Best Retail Stock to Buy Before the Holidays

Sally Beauty stock recently found support from the formerly resistant 120-day moving average

Managing Editor
Nov 9, 2018 at 12:51 PM
facebook X logo linkedin

Another specialty retailer to keep an eye on during the upcoming holiday season is Sally Beauty Holdings, Inc. (NYSE:SBH), which made the top spot on Schaeffer's Senior Quantitative Analyst Rocky White's list of the 25 best retail stocks to own before Black Friday. Below, we will dive into why history says its a good time to hop onto SBH, and how the beauty supply chain has been faring on the charts.

Sally Beauty stock suffered a steady downtrend between January and mid-August, but have since found support at the 120-day moving average, a trendline that acted as a ceiling of resistance for the shares during the aforementioned downfall. What's more, the stock surged nearly 26% in intraday trading yesterday, after the company reported a third-quarter beat-and-raise. Regardless, SBH is down 1.9% at $22.16, at last check.

Daily Chart of SBH with 120MA

Per White, Sally Beauty has been the best retail stocks to own from November through the end of the year, looking at data from the past 10 years. Specifically, SBH has averaged a two-month gain of 10.13%, with an impressive 90% positive return rate. Another lift of this magnitude would put the shares near $24.40 -- fresh annual high territory.

Wrapping up, short interest on SBH fell 3.3% during the most recent reporting period, and now represents a whopping 22.4% of the stock's total available float. At the retailer's average daily trading volume, it would take shorts a whopping three weeks to buy back their bearish bets.


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