AutoZone, Urban Outfitters, Dollar General -- Time to Take Profits

AutoZone, Urban Outfitters and Dollar General shares are riding high on better-than-expected earnings reports. It's time for investors to take some money off the table.
By Richard Suttmeier ,

NEW YORK (TheStreet) -- Shares of retailers AutoZone (AZO) - Get Report, Dollar General (DG) - Get Report and Urban Outfitters (URBN) - Get Report have surged following better-than-expected earnings reports earlier this month.

These stocks recently climbed to all-time intraday highs and have positive but overbought weekly charts. Given how much these stocks have gained, investors should consider booking profits now.

AutoZone, a retailer of auto parts and accessories, reported earnings on March 3. Its stock had closed at $649.53 on March 2 and then traded as high as $674.76 the day of the earnings release. It hit an all-time high of $675.85 on March 24.

Discount retailer Dollar General reported earnings on March 12. The day before, its shares closed at $71.45, then rallied as high as $76.28 on March 20. They've slipped a bit since then.

Apparel and apartment furnishings retailer Urban Outfitters closed at $39.51 on March 9, the day it reported earnings, then spiked as high as $47.25 on March 20.

Let's take a look at the performance measures for AutoZone, key trading levels and analysis of daily and weekly charts.

AutoZone ($662.04 as of Thursday's close) has gained 6.9% so far in 2015 and is 14% above its year-to-date low of $569.54 set on Jan. 16. It's just 2% below the all-time high of $675.85.

Investors looking to buy AutoZone should place a good-'til-canceled limit order to purchase the stock if it drops to $620.19, which is a key level on the charts until the end of June.

Investors looking to book profits should place a good-'til-canceled limit order to sell the stock if it rises to $666.56, which is a key level on the charts until the end of the March.

Let's take a look at the daily chart for AutoZone.

Courtesy of MetaStock Xenith

The daily chart for AutoZone shows a stock that is well above its 50-day simple moving average (blue line) at $628.48 and its 200-day SMA at $567.26. 

Let's take a look at the weekly chart for AutoZone.

Courtesy of MetaStock Xenith

The weekly chart for AutoZone is positive but overbought with the stock above its key weekly moving average (red line) at $639.70 The 200-week simple moving average (green line) at $432.38 is a major support level.

Let's take a look at the performance measures for Dollar General, key trading levels and analysis of daily and weekly charts.

Dollar General ($74.78 at Thursday's close) has gained 5.8% so far in 2015 with the stock 13% above its year-to-date low of $65.32 set on Jan. 16. The stock is just 2% below its March 20 high of $76.28.

Investors looking to buy Dollar General should place a good-'til-canceled limit order to purchase the stock if it drops to $73.95, which is a key level on the charts until the end of March.

Investors looking to book profits should place a good-'til-canceled limit order to sell the stock if it rises to $76.67, which is a key level on the charts until the end of the June.

Let's take a look at the daily chart for Dollar General.

Courtesy of MetaStock Xenith

The daily chart for Dollar General shows the stock well above its 50-day SMA at $70.71 (blue line) and its 200-day SMA at $64.68.

Let's take a look at the weekly chart for Dollar General.

Courtesy of MetaStock Xenith

The weekly chart for Dollar General stays positive but overbought given a close on Friday above its key weekly moving average (red line) at $72.41. The 200-week simple moving average (green line) at $52.04 is a major support level.

Urban Outfitters ($45.46 at Thursday's close) has gained 29% so far in 2015 with the stock 28% above its year-to-date low of $32.58 set on Jan. 20 and 3.8% below the all-time high of $47.25 set on March 20.

Investors looking to buy Urban Outfitters should place a good-'til-canceled limit order to purchase the stock if it drops to $40.82, which is a key level on the charts until the end of 2015.

Investors looking to book profits should place a good-'til-canceled limit order to sell the stock if it rises to $46.32, which is a key level on the charts until the end of the March.

Let's take a look at the daily chart for Urban Outfitters.

Courtesy of MetaStock Xenith

The daily chart for Urban Outfitters ($45.46) shows a stock that is well above its 50-day SMA (blue line) at $39.02 and its 200-day SMA at $35.68. Note that this stock had downside price gap on Oct. 17 to as low as $27.89 on Nov. 18.

Since then it's been up, up and away for the stock. Note the upside price gap on March 10 and the all-time intraday high of $47.25 on March 20.

From the Nov. 18 low to the March 20 high the stock gained a mammoth 69%, reason enough to book profits.

Let's take a look at the weekly chart for Urban Outfitters.

Courtesy of MetaStock Xenith

The weekly chart for Urban Outfitters is positive but overbought with the stock above its key weekly moving average (red line) at $41.33. The 200-week simple moving average (green line) at $34.63 is a major support level.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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