Additional Trading Ideas:
Consider these stocks as possible trading ideas and watch list candidates. Some of these may need to see a break past key support or resistance:
CSX, AA, SAIA, CTRN, PBF, THC, MSFT
NEW BULLISH Plays
Foot Locker, Inc. - FL - close: 49.82 change: +0.62
Stop Loss: 46.90
Target(s): To Be Determined
Current Gain/Loss: unopened
Entry on June -- at $--.--
Listed on June 05, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 1.2 million
New Positions: Yes, see below
Why We Like It:
FL is in the consumer goods sector. The company is a retailer focused on footwear and athletic apparel. As of February 2014 they had 3,473 stores.
This is one retailer that did not seem to be affected by the harsh winter weather that so many retailers blamed for their poor Q1 performances. FL actually beat analysts estimates on both the top and bottom line when they reported earnings on May 23rd. FL is developing a trend of beating Wall Street's estimates.
Their Q1 results were a net profit of $1.11 per share on revenues of $1.87 billion. Consensus estimates were $1.06 on revenues of $1.79 billion. FL also said their comparable-store sales surged +7.6%. Analysts were only expecting +6% improvement. Gross margins also improved +0.4 to 34.6 percent.
Rising revenues, rising same-store sales, rising gross margins all sound like a great recipe for new highs on the stock, which is what we're seeing today.
Wall Street thinks there is more upside ahead. Recent analysts comments suggest FL will be able to keep the momentum alive.
Tonight shares of FL are hovering just below psychological, round-number resistance at $50.00. We're suggesting a trigger to open bullish positions at $50.25. If triggered we'll start with a stop loss at $46.90, under its 50-dma.
We are not setting a target tonight but a good area to aim for is probably the $55 region.
Trigger @ $50.25
Suggested Position: buy FL stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the Aug $50 call (FL140816C50) current ask $1.65
Option Format: symbol-year-month-day-call-strike