This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Trading Guidelines for Abercombie, Costco, 2 Others That Are Reporting

Stocks in this article: ANFCOSTFREDSAFM

NEW YORK (TheStreet) -- Today we crunch the numbers on four retail companies that will report quarterly earnings before the start of trading on Thursday.

Abercrombie & Fitch  (ANF) and Sanderson Farms (SAFM) have double-digit gains year to date. Costco (COST) and Fred's Inc.  (FRED) are lower, with Fred's down by double digits.

The profiles below provide trading guidelines for the stocks in two "crunching the numbers" tables that follow.

Abercrombie (ANF) ($36.66), up 11% for the year to date. Analysts expect the clothing retailer to report an earnings per share loss of 18 cents. The stock has been trading back and forth around its 200-day simple moving average since Feb. 26 with this moving average now at $36.64. The 2014 intraday high is $42.49 on March 5 with a subsequent low at $34.55 set on April 17.

The weekly chart is negative with its five-week modified moving average at $37.24 and its 200-week SMA at $47.07. Weekly and annual value levels are $35.56 and $29.88, respectively, with monthly and semiannual risky levels at $37.37 and $53.43, respectively.

Costco (COST) ($113.87), down 4.3% year to date. Analysts expect the operator of membership retail-oriented warehouses to report EPS of $1.09. The stock set an all-time intraday high at $126.12 on Nov. 25, and has been trading back and forth around is 200-day SMA now at $116.03 since Jan. 8. The stock traded as low as $109.50 on Feb 4 and as high as 117.47 on Feb. 28, and it's below its 200-day SMA.

The weekly chart is positive with its five-week MMA at $114.42 as the stock's 12x3x3 weekly slow stochastic is on the rise. Annual value levels are $112 and $97.60 with weekly and monthly risky levels at $116.62 and $121.42, respectively.

Fred's  (FRED) ($16.49), down 11% year to date. Analysts expect the retailer discount general merchandise chain to report EPS of 20 cents. The stock traded to a multiyear intraday high at $21.05 on March 3, and slumped to as low as $16.16 on May 21, below its 200-day SMA at $17.33.

The weekly chart is negative with its five-week MMA at $17.41 and its 200-week SMA at $14.40. Semiannual and annual value levels are $15.49 and $10.67, respectively, with a quarterly pivot at $16.98, and semiannual and monthly risky levels at $19.77 and $19.83, respectively.

Sanderson Farms (SAFM) ($87.01), up 20% year to date. Analysts expect the poultry processing company to report EPS of $1.64 which is up 10 cents from last Friday's estimate. The stock set an all-time intraday high at $88.78 on Tuesday and the stock above all five key moving averages in the first table.

The weekly chart is positive but overbought with its five-week MMA at $82.72 in a chart pattern that has the formation of a parabolic bubble. Monthly and quarterly value levels are $81.93 and $69.93, respectively, with a weekly pivot at $87.45 which was a magnet on Tuesday.

Your investment policy among these stocks depends on whether or not you are a buyer on weakness or a seller of strength. We advocate using a good-'til-cancelled limit order to buy weakness to a value level or to sell strength to a risky level.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs