Book Profits on Mall Anchors, Big Box Stores, Discounters' Gains

NEW YORK (TheStreet) -- Three mall anchors, two big box retailers and three discount retailers became momentum stocks following their quarterly earnings reports released between Nov. 12 and Nov. 20. All but one reached or exceeded technical levels where booking profits was justified. Let's review these performances.

So far, the holiday season has been successful for shares of mall anchors, Dillards (DDS) , Nordstrom (JWN) and Macy's (M) with Nordstrom and Macy's setting all-time intraday highs on Black Friday.

Big box stores Target (TGT) and Wal-Mart (WMT) had technical breakouts to all-time highs on Black Friday.

Shoppers looking for Black Friday bargains helped investors in discount retailers Dollar Tree (DLTR) , Ross Stores (ROST) and TJX Companies (TJX) see all-time intraday highs.

While holiday shoppers enjoyed "door buster" deals investors were able to book profits at key technical levels.

Dillards ($117.88) has a year-to-date gain of 21% and is up 8.8% since reporting quarterly results on Nov. 13. The stock traded as high as $124.40 on Nov. 20, not quite a new high but high enough for investors to book profits at a key technical at $120.00. The key levels to hold on weakness are the 50-day and 200-day simple moving averages at $108.83 and $106.80, respectively. The key technical levels are $120.00 and $131.50.

Nordstrom ($76.36) has a year-to-date gain of 24% and is up 5.5% since reporting quarterly results on Nov. 13. The stock traded to an all-time intraday high at $77.20 on Black Friday shy of the key technical level at $78.70 where investors should book profits on additional strength. Investors should also consider a sell stop below the stock's key weekly moving average at $73.08.

Macy's ($64.91) has a year-to-date gain of 22% and is up 9.5% since reporting quarterly results on Nov. 12. The stock traded to an all-time intraday high at $65.74 on Black Friday. This gave investors the opportunity to book gains at the key technical level at $65.00. The key levels to hold on weakness are the 50-day and 200-day simple moving averages at $59.12 and $58.55, respectively. The key technical levels are $65.00 and $65.80.

Target ($74.00) has a year-to-date gain of 17% and is up 20% since reporting quarterly results on Nov. 19. The stock traded to an all-time intraday high at $74.76 on Black Friday. This gave investors the opportunity to book gains at the key technical level at $72.15. The key levels to hold on weakness are the 50-day and 200-day simple moving averages at $64.00 and $60.60, respectively.

Wal-Mart ($87.54) has a year-to-date gain of 11% and is up 11% since reporting quarterly results on Nov. 13. The stock traded to an all-time intraday high at $88.09 on Black Friday. This stock had a clear technical breakout above is prior high at $80.13 which indicated upside to a key technical level at $87.80. The key levels to hold on weakness are the 50-day and 200-day simple moving averages at $78.52 and $76.71, respectively.

Dollar Tree ($68.36) has a year-to-date gain of 21% and is up 10% since reporting quarterly results on Nov. 20. The stock traded to an all-time intraday high at $69.50 on Black Friday. This gave investors the opportunity to book gains at the key technical level at $68.30. The key levels to hold on weakness are the 50-day and 200-day simple moving averages at $59.39 and $55.06, respectively. The key technical levels are $68.30 and $71.10.

Ross Stores ($91.48) has a year-to-date gain of 22% and is up 11% since reporting quarterly results on Nov. 20. The stock traded to an all-time intraday high at $91.99 on Black Friday. This gave investors the opportunity to book gains at the key technical level at $86.45. The key levels to hold on weakness are the 50-day and 200-day simple moving averages at $79.80 and $71.92, respectively.

TJX Companies ($66.16) has a year-to-date gain of just 3.8% and is up 6.2% since reporting quarterly results on Nov. 15. The stock traded to an all-time intraday high at $66.47 on Black Friday. This gave investors the opportunity to book gains at the key technical level at $66.00. The key levels to hold on weakness are the 50-day and 200-day simple moving averages at $61.85 and $58.52, respectively.

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

Follow @Suttmeier

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.


TheStreet Ratings team rates MACY'S INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate MACY'S INC (M) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

You can view the full analysis from the report here: M Ratings Report

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