Top-performing retail stocks American Eagle Outfitters (AEO) and Urban Outfitters (URBN) tested a key technical level after fellow youth retailers Zumiez (ZUMZ) and Buckle (BKE) reported quarterly sales misses. American Eagle stock sank 4.2%, and Urban Outfitters stock lost 2.4%, but both closed above their 50-day moving averages. Meanwhile, teen retail peer Abercrombie & Fitch (ANF) fell further below its 50-day line, retreating 2.35%.
Top Retail Stocks
American Eagle Outfitters and Urban Outfitters have both been on considerable runs in 2018 amid accelerating growth on the top and bottom lines. Urban Outfitters stock earns an IBD Composite Rating of 96 out of 99. American Eagle stock earns a 95 out of 99. The Composite Rating ranks stocks on fundamental and technical factors like earnings growth, profit margins, ROE and price performance.
American Eagle Stock
American Eagle stock fell in heavy volume, but finished above its key 50-day line after undercutting it intraday.
The 50-day line is a technical metric that can be used to help signal support for strong stocks. And in some cases, rebounds off the 50-day can be opportunities to add on shares.
Urban Outfitters Stock
And Urban Outfitters stock retreated in volume that was slightly below average. Even with the declines, both American Eagle and Urban Outfitters are up some 20% from breakouts in February.
Look to see where both of these stocks close the session to determine whether they were able to close above the key 50-day line, which would indicate strength. Breaching support at that level in heavy volume would be bearish.
Abercrombie & Fitch Stock
Meanwhile, Abercrombie & Fitch stock is already below its 50-day line, hitting resistance at that level when it tried to retake the line several sessions ago. Shares have been consolidating since mid-April. Abercrombie stock is currently trading some 15% below a potential buy point at 29.30.
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