Family Dollar (FDO)
Click to Enlarge A bleak labor market has been good for driving traffic to the dollar stores, but it appears their stocks topped out a year ago or more.
Among the dollar store retailers, Family Dollar (FDO) stands out as one to sell in April. FDO stock is off 10% for the year-to-date and it’s hard to see a reversal coming in the very near future. True, FDO stock has an average monthly return of 1.4% for April, but that’s lags the industry average. More worrisome is that it tends to crap out in May and June, with average monthly losses of 0.3% and 3.3%, respectively.
As for price momentum to the upside, there is none. FDO stock trades 23% below its 52-week high, 7.3% below its 50-day moving average, and 13.6% below its 200-day moving average. FDO stock has little relative strength heading into the month, scoring a 30 out of 100 on Thomson Reuters’ Relative Strength Indicator. FDO sure looks like one of the stocks to sell this month.