Discount retailers Dollar General (DG) , Dollar Tree (DLTR) , Kohl's (KSS) , Ross Stores (ROST) and TJX (TJX) report quarterly earnings starting with Kohl's before the opening bell on Thursday. The others report between Nov. 15 and Dec. 1. All five are in recovery mode as shown on their weekly charts.
Dollar General is mired in bear market territory 26.2% below its all-time intraday high of $96.88 set on July 27. The stock gapped significantly lower on Aug. 25 on weaker-than-expected earnings. The stock set its 2016 low of $66.50 on Oct. 5, and the rebound since then has been 7.5%. The rural-based discount retailer reports earnings on Dec. 1 and analysts expect the company to earn 93 cents a share.
Dollar Tree is mired in bear market territory 23.9% below its all-time intraday high of $99.93 set on Aug. 11. The stock gapped significantly lower on Aug. 25 on weaker-than-expected earnings. The stock set its 2016 low of $72.55 on Nov. 9, and the rebound on that day was 4.8%. The rural-based and suburban discount retailer reports earnings on Nov. 22 and analysts expect the company to earn 78 cents a share.
Kohl's is in correction territory 12.2% below its Jan. 7 high of $52.06. The stock traded as low as $33.87 on May 12 and is in bull market territory 34.9% above this low. This discount retailer reported earnings before the opening bell on Nov. 10 and analysts expected this company to earn 66 cents a share.
Ross Stores is in bull market territory 24.7% above its Jan. 20 low of $50.42. Analysts expect this discount retailer to report to earn 56 cents a share after the closing bell on Nov. 17. The stock is 5.2% below its Aug. 19 high of $66.28.
TJX is in correction territory 11.2% below its Aug. 15 high of $83.64. TJX reports their earnings before the opening bell on Nov. 15 and analysts expect this discount retailer earn 87 cents a share.
Here's the scorecard for the five discount retailers.
Here's the weekly chart for Dollar General.
Courtesy of MetaStock Xenith
The weekly chart for Dollar General will be negative but oversold if the stock ends the week below its key weekly moving average of $71.40, but will be neutral on a close above this key level. The stock has been above its 200-week simple moving average of $66.30 in recent weeks. The weekly momentum reading at 8.96 is well below the oversold threshold of 20.00.
Investors looking to buy Dollar General should consider doing so on weakness to $66.30, which is the 200-week simple moving average. Investors looking to reduce holdings should consider selling strength to $81.13, which is a key level on technical charts until the end of 2016.