Today's pop could be just the beginning of a surge for ANF
Abercrombie & Fitch Co (NYSE:ANF) stock is up 5.9% tat $36.95 at last check, bouncing off a newfound floor at the $34 region. The security is not far off its June 29, one-year high of $38.16, and has amassed an impressive 111.5% year-over-year lead. Better yet, its recent pullback may be just what ANF needs to notch a fresh peak.
Per Schaeffer's Senior Quantitative Analyst Rocky White, Abercrombie & Fitch stock is now within one standard deviation of its 40-day moving average. In the past three years, the shares have seen five similar signals, and were positive one month later 80% of the time, averaging an 18.3% pop. A move of comparable magnitude would put ANF over the $43 mark for the first time since November 2021.
The security looks ripe for upgrades and/or price-target hikes. Of the eight analysts in coverage, five still rate it a tepid "hold" or worse, while the 12-month consensus target price of $32.20 is a 13% discount to current levels. Additionally, short interest accounts for 10.8% of ANF's available float, indicating a further unwinding of pessimism among short sellers could provide a boost.
Premiums are affordably priced at the moment, making this an excellent opportunity to bet on the stock's next move higher. This is per the equity's Schaeffer's Volatility Index (SVI) of 42%, which ranks at the extremely low 10th percentile of readings from the past year.