• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Columbia Sportswear Bounces on Earnings but May See More Weakness

Shares of the outdoor apparel maker got a nice bump last Friday from a big earnings beat, but its technicals indicate the positive momentum may not last.
By BRUCE KAMICH
Feb 07, 2022 | 08:47 AM EST
Stocks quotes in this article: COLM

In his first Executive Decision segment of last Friday's "Mad Money" program, host Jim Cramer spoke with Tim Boyle, chairman, president and CEO of Columbia Sportswear (COLM) , an outdoor apparel maker that last week reported a big fourth-quarter earnings beat.

Boyle acknowledged that Columbia is seeing supply chain disruptions around the globe, but he said the company has done everything it can to mitigate them and was able to deliver fantastic earnings.

When asked about those earnings, Boyle said consumers were smart and bought early last year, leading to fewer promotions and higher gross margins. Columbia also slowed its online sales to help support retailers and ensure they had all the inventory they needed this winter.

Let's check out Columbia's charts again. The last time we tried on the charts of COLM was way back on Aug. 19, 2020. 

In this updated daily bar chart of COLM, below, we can see that prices have traded lower since late April. Prices are trading below the declining 200-day moving average line and testing the declining 50-day line. The On-Balance-Volume (OBV) line shows on-and-off weakness from April as traders have been more aggressive sellers than buyers. The Moving Average Convergence Divergence (MACD) oscillator has crossed to a cover shorts buy signal but remains below the zero line.

In this weekly Japanese candlestick chart of COLM, below, we see a less-than-positive picture. Prices are trading below the declining 40-week moving average line, so the intermediate term trend is bearish. The most recent candle is white (bullish) but shows an upper shadow as traders rejected the highs of the week. The OBV line shows weakness from April and the MACD oscillator is bearish.

In this daily Point and Figure chart of COLM, below, we can see a potential upside price target of $106.

In this weekly Point and Figure chart of COLM, below, we can see a downside price target of $79. A bounce and then a decline?

Bottom line strategy: The charts and indicators of COLM do not yet show a clear path higher for prices. We could see COLM bounce further to the upside in the short run, but the clues point to further declines in the weeks ahead. Avoid the long side of the stock but consider purchasing the products.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Apparel | Consumer | Retail | Mad Money | Executive Interview | Real Money

More from Stocks

So Far My Tax-Loss Selling Recovery Strategy Is Paying Off Big-Time

Jonathan Heller
Feb 4, 2023 12:30 PM EST

Here's how I'm making out on these names that were down at the end of last year.

How to Trade an Irrational Market

James "Rev Shark" DePorre
Feb 4, 2023 10:00 AM EST

The crowd of investors is often irrational, but most of the time it's right.

In a Week Full of Surprises, This Was the Market's Biggest

James "Rev Shark" DePorre
Feb 3, 2023 4:42 PM EST

We had the Fed's rate decision, jobs numbers, and mega-cap tech earnings land. But here's what was the wildest action.

3 High-Yield REITs for Safe Dividend Income

Bob Ciura
Feb 3, 2023 2:31 PM EST

These names have joined the ranks of the world's most elite dividend growth companies as Dividend Aristocrats and/or Dividend Kings.

Holy Fed, Batman! FAANG Has a Major Toothache!

Jim Collins
Feb 3, 2023 12:23 PM EST

Here's why the markets are sounding a lot like the campy 'Batman' show -- and how to make sure you don't succumb to the market's Joker.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:58 PM EST REAL MONEY

    Sarge Guilfoyle Breaks Down the Jobs Report, Fed Policy and Stocks!

    Watch it here!
  • 11:35 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Trading an Irrational Market
  • 02:10 PM EST REAL MONEY

    Fed Rate Decision

    Fed Lifts Benchmark Rate by 25 Basis Points, Sees ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login