• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

2 Well-Known Retail Stocks You Should Consider Shorting This Week

These 'bearish bets' names are showing both technical and quantitative deterioration.
By BOB LANG
Dec 22, 2019 | 08:00 AM EST
Stocks quotes in this article: AEO, URBN

Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each Friday that look bearish.

While we will not be weighing in with fundamental analysis we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.

American Eagle Outfitters

American Eagle Outfitters Inc.  (AEO)  recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.

This retailer is stuck in the mud here with lower highs and lower lows. The dam looks about to break, too, with rather tepid support at the $14 level.

The Relative Strength Index (RSI) is weak and making lower highs while money flow is poor. This being the holiday period we would expect to see retailers produce some good results, but this one is far from good.

Short to the single digits -- that's where this underperformer is headed.

Urban Outfitters

Urban Outfitters Inc.  (URBN)  recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.

Here's another trendy retailer that has taken its lumps over the years. While the chart may look like a bullish setup there is nothing that is appealing here. Indeed, the rally up into resistance zones makes this a nice short candidate.

A good target is the support level around the $24 area; however, with some gaps below that need to be filled, this stock could move back to the August lows without much effort.

A nice short, but put in a buy stop around the $30 area.

This commentary is an excerpt from "5 Bearish Bets" a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
 
Want to find out the three other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get "Bearish Bets" each week!

-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Lang and Trifecta stocks had no positions in the securities mentioned.

TAGS: Short-selling | Investing | Markets | Stocks | Technical Analysis | Trading | Bearish Bet | Retail | Quant Ratings | Trifecta Stocks

More from Stocks

ATI Inc. Could Test Its Mettle and Extend Its Winning Streak

Bruce Kamich
Jun 7, 2023 7:30 AM EDT

The producer of specialty metals has been climbing on its charts and that trend looks like it could continue.

Market Broadens, Russell Roars, Recession Debate, Why AMD Moved, Boeing Defect

Stephen Guilfoyle
Jun 7, 2023 7:29 AM EDT

This could be the most significant technical development for the Russell 2000 and the IWM in quite some time.

More Rotation Out of Big-Cap Tech and Into the Rest of the Market Is Key

James "Rev Shark" DePorre
Jun 7, 2023 7:04 AM EDT

The big question is, can the broad market, and small-caps in particular, continue to produce relative strength?

The New Cool Thing: To Call a Bull Market

Helene Meisler
Jun 7, 2023 6:00 AM EDT

I suspect that the catch up trade that has finally gotten in gear is what will turn divided sentiment into one cohesive bunch of bulls.

The Indexes Cover Up Positive Action, for a Change

James "Rev Shark" DePorre
Jun 6, 2023 4:43 PM EDT

Is a rotation into the lagging names starting to gain traction? Let's see.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:19 PM EDT CHRIS VERSACE

    AAP Podcast: This Company Is Not Going 'Solo'

    Listen in as I talk with the very diversified Solo...
  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login