Ever-Glory (NASDAQ:EVK) stock is surging higher on Thursday despite a lack of news from the Chinese fashion company.
The increase in EVK stock comes alongside heavy trading of the shares this morning. As of this writing, more than 25 million shares have changed hands. That’s a massive spike compared to the stock’s daily average trading value of 3 million shares.
Ever-Glory is a major fashion retailer in China that operates a total of 923 stores. The company’s brands include La go go, Velwin, Sea To Sky and Idole. While it’s a retailer, it also offers supply chain services to other retailers as well. Its focus is on those with casual wear, outerwear, and sportswear brands. Those wanting to know more can follow this link for a breakdown of the company.
So is it worth jumping on the EVK hype train this morning? Maybe not. While it’s true Ever-Glory has been on the rise lately even without news, that doesn’t mean investors want to take a chance on it. The company’s earnings have been mixed these last few years and its stock has had trouble maintaining high prices in the past.
It’s also worth noting that Ever-Glory may not have the staying power to keep it relevant. Sure, it’s survived the novel coronavirus pandemic up to this point, but only on steep discounts of its products. The company’s also a cheap brand that doesn’t have the power to stand up to international fashion brands that customers desire more.
EVK stock was up 154.3% as of Thursday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.