Family Dollar Stores
Nearest Support: $65
Catalyst: Q3 Earnings >>5 Stocks Setting Up to Break Out Family Dollar Stores ( FDO) posted some earnings data of its own this week, earning $1.05 for its fiscal third quarter. Wall Street had been expecting earnings of $1.03. The numbers were well received by investors, who bid shares up significantly at Wednesday's open, shoving the stock through a resistance level that had been keeping FDO restrained for the last few months. The news has the stock at a new 52-week high. Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. Investors who aren't risk-averse can consider putting on a position here. For another take on Family Dollar, check out " 5 Hated Earnings Stocks That You Should Love."