Amazing how quickly the year has passed us by. The holiday season is here, and its time to buy gifts, while most stores will continue to see slumping numbers through the season, here are 6 retailers I believe are best poised to rise from the ashes this winter.
Walmart – WMT
This stock seems like a no brainer to me. Slumping economy + no money + increased unemployment + gift buying = Increase in Walmart (WMT). Check out my latest coverage of this giant superstore.
TJ Maxx – TJX
If any stock has been a model of consistency for 2009 it is definitely TJ Maxx (TJX). The stock has been on a steady uptrend for the whole year thus far. Considering a lot of people will be buying low ticket items (including clothes) not just for the holiday season but also because it is getting colder, I feel TJ Maxx should continue its push higher into 2010.
Technically this stock is a buy as long as it stays in channel. Look for it to head into the $40s.
Aeropostale – ARO
Aeropostale (ARO) continues to steal market share from Abercrombie & Fitch (ANF) and was just recently upgraded to neutral from sell with a price target of $34.
Technically there is a lot left to be desired from this stock. I would like to see it bounce off the 62% line of the fibonacci retracement and also move above the 200 SMA.
Apple -AAPL
Pretty much seems like a no-brainer here. Regardless of how bad the economy gets it feels like Apple (AAPL) keeps getting stronger and stronger.
I like Apple as long as it stays in the channel or even breaks out higher. Look for $210+.
Urban Outfitters – URBN
The “hip” clothing retailer is sitting on a mound cash, which is one of the main reasons to like it heading into the holiday season. The only thing that can really hurt a stock with a lot of cash on hand is when they start to go on a shopping spree. Lets hope Urban Outfitters (URBN) stay quite at least over the next couple of months.
Once again we have another stock that has been in an uptrend for much of 2009. If we can get a bounce here off the 200 SMA, then I like an initial price target of $36.
Amazon – AMZN
Similar to Apple, Amazon (AMZN) seems to keep on ticking as the economy struggles. As more people begin to look for deals and avoid the holiday traffic, many of these people will turn to Amazon.
Technically the recent gap up looks like there may be a mild pullback in store for the online retailer. On the other hand, why bet against this stock from continuing to rise? I’m seeing $140+.
What retailers are you looking at this holiday season?