As the stock market continues to face volatility, here’s a look at five retail stocks showing relative strength: Kohl’s (KSS), Michael Kors (KORS), Urban Outfitters (URBN), Tailored Brands (TLRD) and At Home (HOME).
Sector Rotation To Retailers
Stock market sector rotation continues. Many retailers are shining as top tech stocks like Facebook (FB), Amazon (AMZN) and Google parent Alphabet (GOOGL) struggle to maintain dominance.
Retail Stocks Outperform
One indicator of outperformance is the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the RS line is spiking into new high ground, that’s bullish. It’s especially bullish when the line hits a new high before the stock hits a new price high.
Retailers Kohl’s, Michael Kors, Urban Outfitters, Tailored Brands and At Home are all on our current list of stocks with relative strength at a new high.
High Composite Ratings
At Home leads the group with a Composite Rating of 96 out of 99 while Michael Kors earns a 93. Urban Outfitters scores a 91. Tailored Brands has an 88 Composite Rating and Kohl’s has an 86. The Composite Rating ranks stocks on a variety of key fundamental and technical factors, including relative strength.
Kohl’s
Kohl’s stock, by the end of Friday’s session, had shaped a flat base with a 69.58 buy point. Shares fell 4.35% to 64 on Friday, just undercutting the 50-day line.
Michael Kors
Michael Kors stock is now back above the 50-day line, a prior resistance level. Kors is 7% below a 70.05 entry point. The RS line is at a new high before a new price high, a very bullish indicator.
Urban Outfitters
Urban Outfitters is just extended past the 5% buy range from a breakout over 36.10. Though the stock initially struggled to hold above the buy point, it found support at the 50-day.
Tailored Brands
Tailored Brands, which owns Men’s Wearhouse, is up 8% since breaking out of a flat base with a 26.13 entry point on April 3. Investors should be careful to not let a double-digit gain from a breakout disappear, which would be considered a round-trip sell signal.
At Home
At Home, a home furnishings retailer that came public in August 2016, attempted to break out past a 34.12 buy point from a consolidation. The stock hit a record 35.60 intraday Friday but reversed lower to close down 1% at 33.72 as the broader market struggled. Even with a downside reversal, the RS line is at a new high.
Meanwhile, home interior building products retailer and recent IPO Floor & Decor (FND) is performing well, up 14.5% since breaking out on March 20.