2 Retailers That Could Pop in September

LB stock hit a new low earlier this week

by Lillian Currens

Published on Aug 30, 2019 at 2:27 PM

The retail sector has been firmly in focus this week, with several stocks seeing huge moves after earnings, including J.Jill (JILL) and Dollar General (DG). Sector peers L Brands Inc (NYSE:LB) and Ross Stores, Inc. (NASDAQ:ROST) could come into focus next month, too, with both showing up on Schaeffer's Senior Quantitative Analyst Rocky White's list of best stocks to own in September. Let's look at what kind of moves both apparel names have made in the last 10 years, and what that could mean for the upcoming month.

Looking at LB, the stock has taken quite a beating in August, as continued struggles in its lingerie unit Victoria's Secret sparked a post-earnings drop last week. The equity is on course for a nearly 36% monthly loss -- its worst in at least 20 years. The stock is slightly higher today, however, up 0.6% to trade at $16.71, bouncing back after tagging a 10-year low of $16 earlier this week.

According to White's data, LB could see an even bigger rebound next month, if history is any indicator. In the last 10 years, LB has finished September higher nine times, with an average return of 7.2% -- the second best return on the list after Ulta Beauty (ULTA). At its current perch, a similar move would put the stock right back beneath $18. 

ROST, on the other hand, just hit a brand new all-time high of $108.48 today, before losing steam in the $108 region, which has acted as a ceiling for the retail stock in recent months. The equity has since pulled back, now down 0.8% at $106.26. 

The clothing seller could conquer this level of resistance next month, though, if past is precedent. Per White's data, ROST has enjoyed eight September wins during the past 10 years, and has averaged a monthly gain of 3.4%. A move of the same magnitude would put the stock north of this $108 ceiling, and into uncharted territory near $110.  

a schaeffer's exclusive


We're celebrating 38 years with this FREE insider report!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
Oil Volatile in Choppy Week for Stocks
Oil had its best day in over a decade on Monday
2 Stocks Analysts Are Talking About Today
Bofa-Merrill Lynch downgraded Xilinx, while Etsy was upgraded at RBC
How the 2020 Election Will Affect the U.S. Economy
The 2020 election could see some major changes in the American economic system.