Costco, Home Depot and Other Retail Stocks With Recent Golden Crosses

By Trey Thoelcke Updated Jan 30, 10:10PM EST · Published Apr 12, 11:15AM EDT

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Costco, Home Depot and Other Retail Stocks With Recent Golden Crosses — © Thinkstock

Golden crosses and death crosses are common signals in technical analysis and refer to the relationship between short-term and long-term moving averages. The golden cross typically is seen as a bullish sign, perhaps a stock that has broken out or is about to. The death cross, on the other hand, can be a bearish sign, perhaps warning investors to get out of the way or signaling that it may be time short the stock.

Here are five retailers that recently saw their 50-day moving average cross above the 200-day average, a golden cross, and may be worth a look now.

Home Depot Inc. (NYSE: HD | HD Price Prediction) saw its golden cross this week, reversing the death cross seen back in November. This home improvement superstore operator is one of a handful of companies holding their own against the e-commerce incursion. Shares are more than 18% higher year to date, and analysts on average recommend buying shares.

Costco Wholesale Corp.’s (NASDAQ: COST) short-term moving average crossed above the long-term one at the beginning of this month, and the gap between the averages has widened to more than $4. Like Home Depot, this warehouse membership retailer is holding its own against e-commerce giants. Its shares are up more than 18% year to date, while the S&P 500 has gained about 16%. Here too, analysts overall recommend buying shares.

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Since Carvana Co.’s (NYSE: CVNA) golden cross last week, the gap between the two averages has widened to about 3% of the share price. This retailer operates an online car-buying platform and aims to disrupt the car dealer industry. Since the beginning of the year, the shares are up 97% or so. The consensus recommendation is to buy Carvana shares.

Floor & Decor Holdings Inc.’s (NYSE: FND) golden cross happened at the end of March. The gap between the two averages has widened to more than 6% of the share price. This Atlanta-based flooring products purveyor is scheduled to post quarterly results on May 2. Its shares now are up more than 78% year to date. Analysts on average recommend buying shares, though that sentiment has weakened recently.

Bed Bath & Beyond Inc. (NASDAQ: BBBY) saw its golden cross last week, and it looks like the short-term moving average hadn’t been north of the long-term one in years. The domestics retailer just posted better-than-expected earnings, but it is also feeling pressure from activist investors to make big changes. Shares are up almost 59% year to date, but here the consensus analyst recommendation is to hold the shares.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.