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Retailer Urban Outfitters ( URBN ) soared Tuesday after earnings topped expectations. But one day of strong price performance doesn’t make a stock an industry group leader. It takes a lot more than that. Urban Outfitters is a member of IBD’s apparel retail industry group. The group has rallied about 21% since its mid-November low. Over the same time, the S&P 500 is down about 3%. Leadership is fairly broad in the group. As of Monday’s close, four names owned Composite Ratings of 90 or higher, and should be regarded as the group’s leaders. Discount retailer Ross Stores ( ROST ) hasn’t made a lot of progress after a breakout over a 55.74 buy point, but it’s still holding near highs on the heels of a strong earnings report March 1 that saw the company deliver its seventh straight quarter of double-digit profit growth. As part of its earnings release, the company also upped its dividend 15% to 13.5 cents a share. The dividend is payable March 31 to shareholders of record March 14. Competitor TJX Companies ( TJX ), which operates TJ Maxx and HomeGoods stores, is more than twice the size of Ross Stores, with a market capitalization of just over $50 billion. When it reported Q4 results last month, TJX announced plans to raise its quarterly dividend by 24% to 26 cents a share. It also plans to buy back $1.5 billion to $2 billion of stock in the current fiscal year that ends next January. TJX is also showing relative strength. It’s trading tightly and is still in buy range from a 74.75 entry. Small cap Express ( EXPR ) is showing some signs of accumulation as it works on the right side of a base with a 20.82 entry. Q4 earnings are due Wednesday before the open. Earnings are expected to rise 33% from a year ago to 65 cents a share. In January, Express raised its Q4 guidance thanks to strong holiday sales. Express is a specialty apparel and accessories retailer of women’s and men’s merchandise, targeting the 20- to 30-year-old crowd. Another small-cap, Francesca’s ( FRAN ), is holding near highs, but is extended after a breakout in December over a 15.60 cup-with-handle buy point. It’s been getting support at its 10-week moving ever since the company raised its earnings guidance in January, also due to strong holiday sales. Francesca’s hasn’t announced an earnings date yet, but it should be later this month. After several quarters in a row of declining earnings growth, quarterly profit is seen rising 62% to 34 cents a share with sales up 23% to $132 million. Last month, the Commerce Department released solid retail sales data for January. Recession fears were quelled by news that overall sales rose 0.2%, in line with expectations. December sales were revised upward to a 0.2% gain from a previously reported decline of 0.1%. Core retail sales jumped 0.6% after falling 0.3% in December. February retail sales data are due Tuesday next week. Scalper1 News
Scalper1 News