NEW YORK (
TheStreet) -- Retail stores that are mall anchors reported their quarterly results in the days just following the Presidential Election on Nov. 7 and Nov. 9. Three beat their earnings estimates and two missed.
Today I will profile these stocks and provide updated "buy-and-trade" strategies including for some of the other retailers that reported earnings this week.
First a quick update on
(HD - Get Report) which reported results pre-market on Tuesday. HD beat earnings estimates on both the top and bottom line, and the stock set a new multi-year high at $64.44.
Retail Earnings at the Mall
I indicated that closes above my monthly pivot at $62.76 indicates upside is to its all-time bubble top of $70.00 set in April 2000. HD did not hold onto those gains and the close on Wednesday was below $62.76 which indicates risk to my quarterly value level at $58.83. In hindsight booking profits between $62.76 and $64.44 was prudent buy-and-trade strategy.
we have three retail-oriented sectors. Consumer discretionary is 7.0% undervalued, consumer staples is 10.0% overvalued and retail-wholesale is 2.8% overvalued.
Here are my buy-and-trade profiles for the mall anchors:
(DDS - Get Report)
($82.50): Has a buy rating and is 12.0% overvalued. The stock traded up to a multi-year high of $86.71 on Nov. 8 in anticipation of a positive earnings report. The stock had a significant beat on EPS earning 96 cents well above the 75 cents a share estimate, but that was priced in as the stock fell to $82.18 yesterday. My monthly value level is $77.78 with a quarterly risky level at $85.23, which was tested at that pre-earnings high. The weekly chart profile shifts to negative on a weekly close below the five-week modified moving average at $78.44.
(JCP - Get Report)
($16.89): Has a hold rating and traded lower on Nov. 9 on a significant earnings miss with an EPS loss of 93 cents compared with a 6 cents a share loss estimate. My monthly value level is $14.16 with a semiannual pivot at $18.18 and weekly risky level at $19.32. Yesterday's low at $16.89 is a multi-year low. The March 2009 low was $13.71. The weekly chart profile has been negative since the week of Oct. 26.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts