It’s been a roller coaster ride of a year for investors, with the S&P-500 (SPY) finding itself down more than 20% year-to-date in one of its worst starts ever before clawing back following a slight deceleration in CPI sequentially (8.5% vs. 9.1%).
One of the hardest hit groups this year has been the Retail Sector (XRT), with a considerable portion of the sector suffering when consumers adjust their spending habits.
While this has led to some investors steering clear of the sector, some names tilt more towards staples than their peers, like Walmart (WMT), and some discretionary names have seen large enough corrections that a harder-than-expected landing for the economy looks mostly priced in.
One stock that fits the second bill is American Eagle Outfitters (AEO), which is down over 65% from last year’s highs even after its recent rally.
While I wouldn’t be in a rush to buy either name with the market short-term extended, I believe they belong at the top of one’s watchlist if they pull back towards support. Let’s take a look below: Continue reading "Look For Pullbacks In These 2 Retail Stocks"