Retail
Nordstrom, Rite Aid and Other Retail Stocks With Recent Golden Crosses
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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 whose stocks recently saw their 50-day moving average cross above the 200-day average, a golden cross. Recall that the holiday shopping season is considered a make or break time for some retailers.
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Bed Bath & Beyond Inc. (NASDAQ: BBBY) saw its golden cross in the first week of December, and the gap between the averages is up to almost 5% of the share price. This New Jersey-based domestics retailer has brought in a new chief executive to turn the company around. Its shares have climbed almost 10% in the past month, and they are about 28% higher than at the beginning of the year. Note that the consensus price target is less than the current share price.
Chicos FAS Inc.’s (NYSE: CHS) short-term moving average also crossed above the long-term one early this month, for the first time in years. Despite pulling back from a pre-Black Friday spike, shares have trended upward since September. They are still down more than 30% year to date, while the S&P 500 has gained over 26% in that time. Analysts overall recommend holding shares of this purveyor of women’s apparel and have for months.
The rise in the Guess Inc. (NYSE: GES) short-term moving average began in earnest in August, and the gap between the two moving averages is up to more than 3% of the share price. The Los Angeles-based apparel retailer released its strategic plan and guidance to 2025 about the time of the golden cross. The shares are up about 10% from this time a month ago. Note though that only one out of three analysts surveyed now recommends buying shares.
Nordstrom Inc. (NYSE: JWN) saw a golden cross more than a week ago, reversing a death cross from early in the year. The upscale retailer posted better than expected third-quarter earnings and offered rosy guidance for the year. Shares are currently up less than 2% in the past 30 days, or about the same as the S&P 500. Most of the analysts surveyed still recommend holding the shares, and their mean price target is less than the current share price.
Rite Aid Corp.’s (NYSE: RAD) golden cross happened earlier this month as well, and the difference in the two averages is up to more than 4% of the share price so far. The retail pharmacy operator is scheduled to report its most recent quarterly results this week. Its shares are more than 7% lower in the past month, though. Here too, the mean price target is less than the share price and the consensus recommendation is to hold the shares.
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