See allLatest Trade Alerts

Earnings Season Shifts to Retail

Written by: Richard Suttmeier 05/11/12 - 11:00 AM EDT
Tickers in this article: HD DLTR JCP TGT WMT

Home Depot(HD) -- ($50.62) reports quarterly results on May 15. ValuEngine has downgraded this stock to buy from strong buy with a one-year price target at $56.69. The stock reached a multi-year high at $52.88 on May 3 and a close below the 50-day simple moving average at $50.15 would be negative. My annual value level is $45.95 with monthly risky level at $54.57.

JC Penney(JCP) -- ($33.81) reports quarterly results on May 15. ValuEngine rates the stock a hold with a one-year price target at $34.54. This stock traded down from a year to date high at $43.18 on Feb. 9 to a test of its 200-day simple moving average at $33.16 this week. My quarterly value level is $30.99 with a monthly risky level at $43.32.

Target (TGT) -- ($55.31) reports quarterly results on May 16. ValuEngine rates the stock a strong buy with a one-year price target at $62.26. The stock recently fell below its 50-day simple moving average at $57.41, which indicates risk to the 200-day at $53.01. My quarterly value level is $53.28 with a monthly risky level at $57.08.

More Headlines

Dollar Tree (DLTR) -- ($102.25) reports quarterly results on May 17. ValuEngine rates the stock a buy with a one-year price target at $111.99. The stock reached an all time high at $104.08 on May 3 and on a monthly chart Dollar Tree looks like a bubble similar to the patterns of tech stocks back in 2000. My semiannual value level lags at $84.15 with my monthly risky level at $104.31.

Wal-Mart(WMT) -- ($59.19) reports quarterly results on May 18. ValuEngine rates the stock a strong buy with a one-year price target at $66.92. One thing that a stock-screening program cannot do is factor in the cloud of the Mexican bribery allegations. The stock is trading between its 200-day simple moving average at $57.33 and the 50-day at $60.10. My quarterly value level is $54.35 with my semiannual pivot at $57.80 and my semiannual risky level at $61.09. Wal-Mart is in the ValuTrader Model Portfolio.

With my "buy and trade" strategy, you are always adding to positions on weakness to a Value Level and reducing positions on strength to a Risky Level. This is not labor-intensive. You simply enter "Good Until Canceled" GTC Limit Orders to buy at the value level and sell at the risky level. A "buy and trade" strategy allows you to capture the price volatility as stocks move up and down.