NEW YORK (TheStreet) -- Today we're going to look at how to trade seven retail-oriented companies that plan to report earnings this week. They include Barnes & Noble (BKS) , Darden Restaurants (DRI) and Lululemon (LULU) .
Barnes & Noble ($23.71) reports quarterly results before the opening bell on Tuesday, and analysts expect the book retailer to report a loss of 68 cents a share. The story here is that Barnes & Noble is spinning off its Nook hardware business and through a partnership is having Samsung manufacture Nook-branded tablets.
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The stock is up 59% year to date and hit a 2014 intraday high at $24.00 on Sept. 4. The stock is above all five moving averages in today's first table (see page 3), with overbought 12x3x3 weekly slow stochastics. Semiannual and annual value levels are $20.54 and $15.26, respectively, with a weekly pivot at $22.83 and monthly risky level at $24.41.
Darden Restaurants ($48.07) plans to report quarterly results before the opening bell on Friday, and analysts expect the owner of restaurant chains that include Olive Garden and LongHorn Steakhouse to report EPS of 32 cents. The company could become a turnaround story now that its Red Lobster problems are over and activist investor Starboard Value is pressing for change at Darden.
Shares of Darden are down 12% year to date but have been rebounding after trading as low as $43.56 on July 17. The weekly chart is positive with its five-week modified moving average at $47.13 and 200-week simple moving average at $49.23. The stock is also below its 200-day SMA at $49.40. Monthly and annual value levels are $44.83 and $44.50, respectively, with an annual pivot at $48.40 and quarterly and semiannual risky levels at $51.25 and $59.08, respectively.
Kroger (KR) ($52.41) reports quarterly results before the opening bell on Thursday, and analysts expect the nation's largest grocery chain to report EPS of 69 cents. The company's growth story has pushed the stock to a series of all-time highs. On Friday Kroger announced it was hiring 20,000 people to fill permanent positions.
Shares of Kroger are up 33% year to date and set an all-time intraday high at $52.43 on Friday. The stock is above all five moving averages in today's first table, with rising 12x3x3 weekly slow stochastics. Quarterly and semiannual value levels are $51.65 and $44.89, respectively, with a weekly pivot at $52.34 and monthly risky level at $52.68.
Lululemon ($39.14) reports quarterly results before the opening bell on Thursday, and analysts expect the retailer of yoga apparel to report EPS of 29 cents. The company is still trying to recover from its embarrassing admission that some yoga pants had see-though characteristics. Shares have been unraveling since setting an all-time intraday high at $82.50 on June 10, 2013.
The stock has been below its 200-day simple moving average at $70.62 since Dec. 10 and below its 200-week SMA at $53.83 since the week of Jan. 17. These moving averages are now at $48.28 and $57.81, respectively. The 2014 intraday low was $36.36 on June 13. The stock is below all five moving averages in today's first table but its 12x3x3 weekly slow stochastic is rising.
A weekly close above its five-week MMA at $39.87 will signal that the company has successfully stitched its yoga pants problems. Weekly and monthly value levels are $38.19 and $30.52, respectively, with a quarterly risky level at $63.42.
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