Best Stock to Buy After S&P Sell-Off

The freight shares have found a foothold at their 50-day moving average

Feb 7, 2018 at 12:18 PM
facebook X logo linkedin

As the U.S. stock market recovers from its worst sell-off in years, many traders have an eye out for bargain trading opportunities. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, freight specialist C.H. Robinson Worldwide Inc (NASDAQ:CHRW) has been one of the best stocks to buy after a massive S&P 500 Index (SPX) pullback. And if past is precedent, CHRW stock could be headed back to record-high territory.

Specifically, CHRW has averaged a one-month return of 39.78% following the last nine major S&P sell-offs -- the best of any stock since 1986 -- and boasts an 89% win rate. Based on the equity's current perch at $92.16, up 1.7% on the day, another move of this magnitude would put the shares near $128.79, well above their Jan. 26 record high of $100.18.

More broadly, CHRW shares have been trending higher since bottoming at an annual low of $63.41 last July, up more than 45%. Plus, the stock's recent pullback was quickly contained by its rising 50-day moving average -- a former level of resistance that seems to have now switched to a more supportive role.

Should C.H. Robinson Worldwide shares once again surge after a big SPX sell-off, a round of bullish brokerage notes could certainly draw more buyers to the table. Despite the stock's longer-term uptrend, 11 of 16 analysts maintain a "hold" or "strong sell" rating, while the consensus 12-month price target of $95 sits just 3.1% above current trading levels.

Additionally, the stock has been crushing short sellers, meaning it's ripe for a short squeeze. Short interest accounts for more than 12% of CHRW's available float, and would take nearly three weeks to cover, at the average pace of trading.

And for those looking to take advantage of options leverage, it should be noted that CHRW stock has consistently rewarded premium buyers over the past year. This is based on the equity's elevated Schaeffer's Volatility Scorecard (SVS) reading of 99 (out of 100).


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI