Costco, Home Depot and Other Retail Stocks With Recent Golden Crosses
Golden crosses and death crosses are common signals in technical analysis and refer to the relationship between short-term and long-term moving averages. The golden cross typically is seen as a bullish sign, perhaps a stock that has broken out or is about to. The death cross, on the other hand, can be a bearish sign, perhaps warning investors to get out of the way or signaling that it may be time short the stock.
Here are five retailers that recently saw their 50-day moving average cross above the 200-day average, a golden cross, and may be worth a look now.
Home Depot Inc. (NYSE: HD) saw its golden cross this week, reversing the death cross seen back in November. This home improvement superstore operator is one of a handful of companies holding their own against the e-commerce incursion. Shares are more than 18% higher year to date, and analysts on average recommend buying shares.
Costco Wholesale Corp.’s (NASDAQ: COST) short-term moving average crossed above the long-term one at the beginning of this month, and the gap between the averages has widened to more than $4. Like Home Depot, this warehouse membership retailer is holding its own against e-commerce giants. Its shares are up more than 18% year to date, while the S&P 500 has gained about 16%. Here too, analysts overall recommend buying shares.
Since Carvana Co.’s (NYSE: CVNA) golden cross last week, the gap between the two averages has widened to about 3% of the share price. This retailer operates an online car-buying platform and aims to disrupt the car dealer industry. Since the beginning of the year, the shares are up 97% or so. The consensus recommendation is to buy Carvana shares.
Floor & Decor Holdings Inc.’s (NYSE: FND) golden cross happened at the end of March. The gap between the two averages has widened to more than 6% of the share price. This Atlanta-based flooring products purveyor is scheduled to post quarterly results on May 2. Its shares now are up more than 78% year to date. Analysts on average recommend buying shares, though that sentiment has weakened recently.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) saw its golden cross last week, and it looks like the short-term moving average hadn’t been north of the long-term one in years. The domestics retailer just posted better-than-expected earnings, but it is also feeling pressure from activist investors to make big changes. Shares are up almost 59% year to date, but here the consensus analyst recommendation is to hold the shares.