Extra information may very well be in retailer for some S&P 500 shares hitting all-time highs.
They agreed on one inventory: on-line retailer Etsy.
“Etsy has … been making a pleasant collection of upper highs and better lows,” stated Craig Johnson, senior technical analysis analyst at Piper Sandler, citing a chart of its momentum.
“It has been in a well-defined uptrend. We have truly come again and rechecked that uptrend thrice since popping out from these March lows.”
With a 70-75% earnings progress fee, Etsy’s inventory has “tons extra room to go to the upside” provided that it is not buying and selling at that costly a a number of relative to the remainder of the market, he stated.
“I believe you’ve got bought about 18% upside from present ranges from right here. In order that’s one which I might be shopping for right here on this transfer to the brand new highs,” Johnson stated.
An 18% rise from Friday’s closing costs would carry Etsy to just about $273 a share.
Danielle Shay, director of choices at Less complicated Buying and selling, stated that whereas she would look forward to a pullback earlier than shopping for Etsy at its highs, she could not deny its sturdy fundamentals.
“You might have the pandemic occurring proper now. On-line buying by way of Etsy could be very sturdy,” she stated. “I believe Etsy goes to proceed to commerce increased, particularly into the earnings report that is developing.”
Etsy is scheduled to report earnings on Feb. 24.
Johnson’s second choose was Activision Blizzard, which the Piper Sandler analyst regarded “a bit completely different” than Etsy on a technical foundation.
“It is damaged out of this enormous consolidation vary that it has been in right here for a number of months, and … you possibly can type of measure the peak of that breakout,” he stated.
That measurement, plus the breakout of the consolidation vary and above its 40-week shifting common and its relative power versus the S&P all level to a roughly 26% transfer to the upside for Activision, Johnson stated.
“It’ll be 129, which might be a couple of 26% upside from present ranges. So, that’d be one other one which I might be shopping for at this cut-off date,” he stated.
Shay most well-liked a special S&P gaming inventory over Activision.
“You take a look at the transfer that we have seen in Activision. Nicely, Take-Two hasn’t damaged out but,” she stated. “I might truly choose to purchase Take-Two as a substitute of Activision and attempt to truly seize the breakout strikes as a substitute of shopping for it after the very fact.”
Her remaining choose hinged partly on the spring agricultural season.
“The third one which I might add in right here can be John Deere,” Shay stated. “We have now a extremely sturdy technical chart after which we even have a extremely sturdy macro story. We have now folks gardening greater than normal. The agricultural phase in John Deere was actually sturdy final 12 months and I believe it is going to proceed to be sturdy this 12 months.”
Disclosure: Piper Sandler is a registered market maker for Etsy.