Two of the Most Oversold Holiday Season Stocks

04:52 11/21/2018

Most of us are well aware of the seasonal trading patterns around the holidays.

Most of us are also well aware that companies whose sales and profits ramp up in the holiday season are great stocks to buy for a short-term run-up.

Best Buy is one of the stocks that typically does just this. Just last year, the stock ran from $55 to $80 during the holidays. The year prior it ran from $35 to $45. Now, after a recent pullback with the markets, we expect to see higher highs. Better yet, Best Buy should benefit from a broad uptick in consumer spending.

Fundamentally, things look strong.

In fact, it just posted better than expected earnings thanks to stronger same-store sales. The company just posted EPS of 93 cents, as compared to estimates for just 85 cents. Technically, BBY is ridiculously oversold below its lower Bollinger Band (2,20). RSI, MACD and Williams’ %R are all exceptionally oversold, as well. Near-term, we believe the stock could test $72.50, as we head into the holiday season.

Piper Jaffray just reiterated its overweight rating on the stock with an $87 target. Key Bann Capital Markets has maintained its sector weight rating. And Raymond James reiterated its strong buy rating with a price target of $85 a share.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read