Retail Recap: Best Buy, Home Depot, J.C. Penney Rebound

NEW YORK (TheStreet) -- Today's earnings recap covers 10 of the retail companies I profiled pre-earnings earlier in the week. Some retailers had been weak performers so far in 2014, thus some of the strength that followed results can be viewed as a sigh of relief.

On Feb. 24 I wrote, Tuesday Premarket Earnings: Home Depot, Macy's,Toll Brothers and Visteon and both retailers in the headline traded higher in reaction to their earnings reports which were released before the opening bell Tuesday.

Home Depot (HD) ($81.70): Beat earnings estimates by 3 cents earning 73 cents a share. The stock closed Monday just above its 200-day simple moving average at $77.73 well positioned for a positive reaction to this earnings report. The stock gapped above its 50-day SMA at $79.29 at Tuesday's open and traded to a new all-time intraday high at $82.71 on Wednesday moving above its semiannual risky level at $81.82. The weekly chart shifts to positive with a close this week above its five-week modified moving average at $79.15. My semiannual value level is $75.25 with a semiannual pivot at $81.82 and quarterly risky level at $94.25.

Macy's (M) ($57.96): Beat EPS estimates by 14 cents earning $2.31 a share. The stock gapped above its 50-day SMA at $53.59 at Tuesday's open and traded to a new all-time intraday high at $58.65 on Wednesday above my semiannual risky level is $57.19, which now becomes a pivot. The weekly chart shifts to neutral given a close this week above its five-week MMA at $54.27.

On Feb. 25 I wrote, Dollar Tree, Lowe's and Target Report Premarket and here's how these names plus two more covered in this report performed post-earnings.

Abercrombie & Fitch  (ANF) ($40.04): Beat EPS estimates by 30 cents earning $1.34 released premarket Wednesday. The stock gapped higher at the open and traded up to $40.42 testing its 200-day SMA at $40.27. The stock was well-positioned for a positive earnings reaction as the weekly chart is positive with the stock above its five-week MMA at $34.89. Part of the rebound was a relief rally as the stock had a loss of 21.6% over the last 12 months when I profiled it on Tuesday. Quarterly and annual value levels are $30.78 and $29.88 with semiannual and annual risky levels at $53.43 and $55.28.

Dollar Tree (DLTR) ($55.29): Missed EPS estimates by 3 cents earning $1.02. The stock opened slightly lower and then gained upward momentum as a rally for retailers broadened to additional companies. The stock had been below its 50-day and 200-day SMAs at $53.72 and $54.21 and after a day's high at $56.39 the close was above both for the first time since Nov. 20. The weekly chart was poised for a shift to being positive given a close this week above its five-week MMA at $53.47 and this appears in the cards today. I show quarterly and semiannual risky levels at $60.48 and $61.85.

Lowe's (LOW) ($50.72): Matched EPS estimates earning 31 cents a share. The stock traded as high as $51.28 which is between my monthly pivot at $50.85 and quarterly risky level at $52.64. The weekly chart was poised for a shift to being positive given a close this week above its five-week MMA at $48.07 and this is now a possibility. My semiannual value levels $42.87 and $41.03 with the quarterly risky level at $52.64.

Target (TGT) ($60.49): Beat EPS estimates by 46 cents earning $1.30 a share. The big box retailer warned that the credit card breaches could impact future earnings, but the earnings beat and the fact that the stock was down 10.7% over the last 12 months have been ignored. The stock gapped higher moving above its 50-day SMA at $59.54 but is still well below its 200-day SMA at $65.23. The weekly chart shifts to neutral given a close this week above its five-week MMA and 200-week SMA converged at $58.89 and $57.98. My annual value levels are $54.45 and $53.25 with a semiannual risky level at $67.23.

TJX (TJX) ($60.29): Missed EPS estimates by 2 cents earning 81 cents a share. The stock opened above its 50-day SMA at $60.84 to a day's high at $62.22 but then closed below the 50-day with its 200-day SMA at $56.43. Even with this choppy pattern, the weekly chart shifts to positive given a close this week above its five-week MMA at $60.23. Semiannual and annual value levels are $55.29 and $52.67 with semiannual and quarterly risky levels at $62.97 and $68.04.

On Feb. 26 I wrote, Earnings Preview: JCPenney and Best Buy Are Survivors and here's how these names plus one more covered in this report are performing post-earnings.

Best Buy (BBY) ($25.82): Beat EPS estimates by 23 cents earning $1.04 a share released premarket this morning. The stock opened with a day's high at $28.20 as of 10 a.m. Part of the rebound the stock was on reduced costs in an announcement that some store managers faced job cuts, and because the stock had a year-to-date loss of 36.5%. The weekly chart stays negative but oversold unless Friday's close is above its five-week MMA and 200-week SMA at $28.31 and $28.22. My semiannual value levels are $24.82 and $18.95 with a quarterly risky level at $30.06.

J.C. Penney (JCP) ($5.96): Beat EPS estimates by 11 cents reporting a less than expected loss of 68 cents a share after the closing bell Wednesday. The stock gapped above its 50-day SMA at $6.96 this morning well below its 200-day SMA at $11.44. A reason for the strong rebound is the fact that the stock had a year-to-date loss of 38.5%. The weekly chart shifts to positive given a close this week above its five-week MMA at $6.76. My annual value level is $5.10 with a semiannual risky level at $18.25.

Kohl's Corp (KSS) ($54.44) This morning beat EPS estimates by 3 cents earning $1.56 a share. This retailer was trading higher during the week moving above its 200-day SMA at $52.97 on Tuesday. The stock set a day's high at $55.67 as of 10 a.m. The weekly chart is positive with its five-week MMA and 200-week SMA at $52.88 and $50.68. My semiannual value level is $46.89 with quarterly and annual pivots at $51.01, $52.25 and $54.63 and a semiannual risky level at $57.44.

At the time of publication the author held no positions in any of the stocks mentioned.

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This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff

Richard Suttmeier is the chief market strategist at ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.

Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.

Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.

Click here for details on Suttmeier's "Buy and Trade" investment strategy.

Richard Suttmeier can be reached at RSuttmeier@Gmail.com

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