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5 Unloved Stocks Quietly Scraping New Highs

These unloved stocks are quietly mounting a comeback

By Anthony Mirhaydari, InvestorPlace Market Strategist

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U.S. equities are pushing higher on Wednesday, with the Dow Jones Industrial Average pushing up and over the 25,000 level in what looks like an attempted breakout from the sideways pattern that has been in play since March.

The catalysts are familiar: A strong rally by big-cap technology stocks and investors comfortably ignoring (or numb) to headlines related to trade tensions and the political situation in Europe. Also, folks are shrugging off the approach of another likely Federal Reserve rate hike next week, as well as the start of the summit between President Donald Donald Trump and North Korea in Singapore.

While everyone is focusing on the likes of Amazon.com, Inc. (NASDAQ:AMZN) and Netflix, Inc. (NASDAQ:NFLX) — stocks that just refuse to slow their climb, let alone decline outright — a number of issues are hitting new highs with little to no fanfare.

Here are five to check out: 

Unloved Stocks Hitting New Highs: Under Armour (UA)

nloved Stocks Hitting New Highs: Under Armour (UA)

Hot-then-not sportswear maker Under Armour Inc (NYSE:UA) is enjoying a near-vertical rise in its share price, surging nearly 60% from the levels seen in late April to return to highs not seen since early 2017. The company has been in turnaround mode after competitors including Nike, Inc. (NYSE:NKE) and Adidas AG/S ADR (OTCMKTS:ADDYY) stepped up their game with an aggressive new production launch cadence. But results have stabilized lately thanks to better inventory management, clearing the decks for a more sustained improvement in earnings.

The company will next report results on July 31 before the bell. Analysts are looking for a loss of eight cents per share on revenues of $1.2 billion. When the company last reported on May 1, a break even result beat estimates by five cents per share on a 5.9% rise in revenues.

Unloved Stocks Hitting New Highs: Fossil Group (FOSL)

Unloved Stocks Hitting New Highs: Fossil Group (FOSL)

Fossil Group Inc (NASDAQ:FOSL) shares got nuked from its highs in 2014 upon the release of the Apple Watch from Apple Inc. (NASDAQ:AAPL), which steadily and consistently ate in to the sales of traditional mechanical watches. The peak-to-trough decline was more than 95%. But a renewed effort in the smartphone space gives the company a chance to surprise severely diminished expectations.

The company will next report results on Aug. 7 after the close. Analysts are looking for a loss of 52 cents per share on revenues of $562 million.

When the company last reported on May 8, a loss of 99 cents per share missed estimates by three cents on a 2.2% decline in revenues. 

Unloved Stocks Hitting New Highs: Foot Locker (FL)

Unloved Stocks Hitting New Highs: Foot Locker (FL)

Foot Locker, Inc. (NYSE:FL) shares are on the move, pushing back to levels not seen since last summer and enjoying more than a double off of the lows hit last November. The gapped rally above the $50-a-share level broke a year-to-date downtrend and was spurred by improving results driven by an aggressive pace of product launches by industry leaders like Nike and renewed fashion interest in sneakers.

The company will next report results on Aug. 24 before the bell. Analysts are looking for earnings of 70 cents per share on revenues of $1.8 billion. When the company last reported on May 25, earnings of $1.45 per share beat estimates by 21 cents on a 1.2% rise in revenues.

Unloved Stocks Hitting New Highs: Macy’s (M)

Unloved Stocks Hitting New Highs: Macy's (M)

Macy’s Inc (NYSE:M) shares have more than doubled off of the low set in early November thanks to a series of analyst upgrades that follow the reporting of solid earnings results last quarter. Last month in a note to clients, the Telsey Advisory Group highlighted ongoing sales momentum and strategic initiatives involving merchandising.

The company will next report results on Aug. 15 before the bell. Analysts are looking for earnings of 50 cents per share on revenues of $5.6 billion.

When the company last reported on May 16, earnings of 48 cents per share beat estimates by 13 cents on a 3.6% rise in revenues.

Unloved Stocks Hitting New Highs: Kohl’s (KSS)

Unloved Stocks Hitting New Highs: Kohl's (KSS)

Kohl’s Corporation (NYSE:KSS) shares are pushing higher exiting a multimonth trading range that dominated the action for the year to date. The rally takes shares up and over the prior high from 2015 to hit a new record. Investors have been encouraged by the company’s success in the lower end of the department store market where others — such as J C Penney Company Inc (NYSE:JCP) — have been struggling.

The company will next report results on Aug. 21 before the bell. Analysts are looking for earnings of $1.62 per share on revenues of $4.3 billion. When the company last reported on May 22, earnings of 64 cents per share beat estimates by 14 cents on a 3.6% rise in revenues.

Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2018/06/5-unloved-stocks-quietly-scraping-new-highs/.

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