Stocks Suggest We're Still In a Pawn Shop and Dollar Store Economy
Tweet
Share
E-mail
Get Alerts FDO Hot Sheet
Join SI Premium – FREE
While the market is higher today, looking at some of the stocks making 52-week highs doesn't give one a fuzzy feeling inside. More like a sickening feeling.
For example, look at the dollar stores. Every one is at a new 52-week high today: Family Dollar Stores Inc. (NYSE: FDO), Dollar General Corporation (NYSE: DG), Dollar Tree, Inc. (NYSE: DLTR).
Look at the furniture rentals companies. Aaron's, Inc. (NYSE: AAN) is near fresh highs.
How about Wal-Mart (NYSE: WMT). Yeah, you guessed it - 52 week highs.
The list goes on: Costco Wholesale (Nasdaq: COST), Ross Stores Inc. (Nasdaq: ROST), Target Corp. (NYSE: TGT).
What do all these stocks have in common? In a barbell economy, meaning the bottom-end and top-end is performing well and the middle is getting killed, these companies are at or near the bottom-end of the barbell.
What about the top-end? Tiffany & Co. (NYSE: TIF) - 52-week low. Coach, Inc. (NYSE: COH) - well off highs. LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) - - well off highs. Ralph Lauren Corporation (NYSE: RL) - well off highs.
So while headlines suggest that the economy is improving, these stocks are saying something different.
For example, look at the dollar stores. Every one is at a new 52-week high today: Family Dollar Stores Inc. (NYSE: FDO), Dollar General Corporation (NYSE: DG), Dollar Tree, Inc. (NYSE: DLTR).
Look at the furniture rentals companies. Aaron's, Inc. (NYSE: AAN) is near fresh highs.
How about Wal-Mart (NYSE: WMT). Yeah, you guessed it - 52 week highs.
The list goes on: Costco Wholesale (Nasdaq: COST), Ross Stores Inc. (Nasdaq: ROST), Target Corp. (NYSE: TGT).
What do all these stocks have in common? In a barbell economy, meaning the bottom-end and top-end is performing well and the middle is getting killed, these companies are at or near the bottom-end of the barbell.
What about the top-end? Tiffany & Co. (NYSE: TIF) - 52-week low. Coach, Inc. (NYSE: COH) - well off highs. LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) - - well off highs. Ralph Lauren Corporation (NYSE: RL) - well off highs.
So while headlines suggest that the economy is improving, these stocks are saying something different.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Texas Instruments (TXN) jumps on first above-consensus guide in seven years
- BHP Group (BHP) Said to Weigh Potential Takeover of Anglo American (NGLOY) - Bloomberg
- Affirm Holdings (AFRM) on watch as Walmart (WMT) -backed fintech One introduces buy now, pay later
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
