American Eagle Looks Headed Back to Earth
The momentum hounds have taken the consumer discretionary sector up 15% year to date, and I've been trying to figure out if the names in the group are still attractive or if they have been played out. Are investors looking through to better economy, or have they just jumped on the stocks simply because the group had a little good news and is moving higher?
First I looked at Gap (GPS), and then I looked at Abercrombie & Fitch (ANF). For both, I came to the conclusion that a warmer-than-expected winter and a shift in the Easter holiday played a big part in investors' enthusiasm for the stocks. Both of these names are fundamentally challenged, and it will be hard to sustain further increases in share price unless they have blowout April quarters....390 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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