Scalper1 News
Five of the six lowest-ranked industries among IBD’s 197 industry groups are retail groups. By contrast, only one retail industry group appears in the top 30. That group, specialty retailers, ranked No. 9 on Wednesday, having climbed from No. 120 over the past eight weeks. Not all of the group’s 13 stocks contributed to that climb. GNC Holdings ( GNC ) and salon chain Regis ( RGS ) posted heavy losses in the past two weeks after those companies reported their quarterly results. Others, including Vitamin Shoppe ( VSI ) and Party City Holdings ( PRTY ), posted gradual declines. The big gains, which were mainly responsible for the group’s sharp advance, were shared among three stocks. Beauty supply and salon chain Ulta Beauty ( ULTA ) rose in nine of the past 10 weeks. The run up has been measured, following a 17% spike on March 11 following its fourth-quarter report. Shares are now well extended past a 188.58 buy point. The company reports Q1 results on May 26. Ritchie Bros. ( RBA ) is a heavy equipment auctioneer based in Canada’s British Columbia province. It has run up 37% from a January low as it builds the right side of a pattern. It is forming a handle with a potential buy point at 29.35. The base looks deep, but declined only 31% — well within acceptable bounds. Ritchie Bros. is one of the few stocks in the group near a buy point, but the company’s fundamentals are not of leadership caliber. The EPS Rating is a poor 53, and the SMR Rating is only a B. Ritchie announces its fiscal fourth-quarter results on Monday. Craft and hobby haven Michaels ( MIK ) is a fraction above a 28.89 buy point in a cup-with-handle base. The handle, however, was flawed because it had a wedging form. Also, volume was unimpressive when the stock cleared the buy point. A new handle is developing now and has a much better form. The new buy point is 29.66. Again, the 13-month base looks imposing, but is an acceptable 35% deep. Also worth noting: It is the stock’s first base since clearing a flat base in October 2014, immediately following its IPO. Michaels has not yet announced a Q1 reporting date. Sally Beauty ( SBH ), also a beauty supplies chain, advanced in November through March. Then it slipped into a flat consolidation. At the end of Wednesday, that consolidation on a daily chart counts out to five weeks: 25 trading sessions. That qualifies the pattern as a flat base, with a 33.03 buy point. That is important because the Denton, Tex.-based company is set to report earnings before the start of trade on Thursday. Expectations are modest, with analyst consensus projecting a 5% EPS gain and a 3% gain in sales. Shares popped 13% on Feb. 4, after reporting an earnings and revenue beat in its fiscal first quarter. Scalper1 News
Scalper1 News