Target Leads Five Stocks Near Buy Points As Sector Gains Momentum Investor’s Business Daily3 min read
As temperatures drop and Halloween gives way to Thanksgiving, retail stocks are gearing up for a busy holiday season despite supply chain issues.
Target (TGT), Walmart (WMT), Academy Sports & Outdoors (ASO), Dick’s Sporting Goods (DKS) and Williams-Sonoma (WSM) are all retail stocks just above or below buy points.
Retail stocks are starting to heat up, amid some tentative signs that supply-chain issues and labor shortages might be easing.
Retail Stocks: Target
Shares fell 2.1% to 254.27 in last week’s stock market trading, with all of that coming on Friday’s 2.4% slide. TGT stock is in a cup base with a 267.16 entry point on a daily chart, according to MarketSmith analysis. But on a daily chart, Target stock had a down week, giving it a handle and a 262.61 buy point.
The new Target stock base follows a strong run for the discount giant.
Target is the top-ranked stock in IBD’s Retail-Major Discounter Chain group. It has a 93 Composite Rating out of 99 and an EPS Rating of 87. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity and relative price performance
The retail stock announced last month that it is teaming up with Affirm (AFRM) and Sezzle for the holiday season, becoming the latest to jump on the buy-now-pay-later trend popular with younger shoppers.
Target will report third-quarter results on Nov. 17.
Shares rose 0.5% last week to 150.23. WMT Stock has been in a yearlong consolation with a 153.76 buy point.
But with WMT stock going sideways in a strong market, the relative strength line has been sliding for nearly a year. The RS line compares a stock’s performance to that of the S&P 500. When the RS line is climbing, this means it is outperforming the benchmark index.
The RS line is a helpful tool for finding leading and lagging stocks in any type of market. An RS line hitting record highs before the stock is especially bullish.
Walmart also has a weaker 68 Composite Rating and a 76 EPS Rating.
The company will release Q3 earnings on Nov. 16. Walmart started its seasonal hiring in late September and is looking to add 150,000 associates to its ranks.
Academy Sports & Outdoors Stock
Shares jumped 7.5% last week to 45.98. ASO stock is currently in buy range after breaking out of a cup-with-handle base with a 45.53 entry point on Nov. 3.
Academy Sports is the second-best stock in IBD’s Retail-Leisure Products group. The stock has a 95 Composite Rating and 94 EPS Rating.
Dick’s Sporting Goods Stock
Shares climbed 4.4% to 129.65 last week. DKS stock is forming a cup base with an official 140.95 buy point. But investors have an alternate early buying opportunity at 128.96, based on the Oct. 26 high.
The sporting goods store will announce Q3 results before the market opens on Nov. 23.
Dick’s Sporting Goods jumped last week on a closer partnership with Nike (NKE), agreeing to link their brand loyalty memberships. Nike stock moved past a buy point last week as well.
Shares leapt nearly 12% last week to 207.23. WSM stock is in buy range after breaking out of a consolation with a 204.51 buy point.
Williams-Sonoma stock has a 94 Composite Rating and is the top-ranked stock in IBD’s Retail-Home Furnishings group.
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