Sears, Perry Ellis Stocks Soar; Plus, the Worst Stock on the NYSE

SJM stock could close below its 50-month moving average for the first time since 2009

Aug 24, 2017 at 1:48 PM
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The major stock indexes have spent time on both sides of breakeven today, but were last seen cautiously higher, as markets watch the central bank summit in Jackson Hole, Wyoming. Among the stocks in the spotlight today are retailer Sears Holdings Corp (NASDAQ:SHLD), apparel maker Perry Ellis International, Inc. (NASDAQ:PERY), and food-and-beverage company J M Smucker Co (NYSE:SJM). Here's a quick look at what's moving shares of SHLD, PERY, and SJM.

Smaller-Than-Expected 2Q Loss Sends Sears Stock Soaring 

Despite reporting an 11.5% decrease in same-store sales, Sears stock is up 6.8% to trade at $9.15, after the company posted smaller-than-expected second-quarter losses. Sears Holdings also said it would shutter an additional 28 Kmart stores in 2017. Today's jump ranks SHLD among the best stocks on the Nasdaq, though the stock is struggling to overtake its year-to-date breakeven level, as well as its 200-day moving average, which has contained breakout attempts since April. 

However, a short squeeze could help SHLD stock muscle even higher. Short interest represents more than two-thirds of SHLD's total available float. At the equity's average daily trading volume, it would take more than a week to buy back the shorted shares.

Impressive Earnings Rank PERY Among Best of Nasdaq

Joining SHLD as one of the best stocks on the Nasdaq today is Perry Ellis stock, last seen trading 15.3% higher at $19.97. The lift comes after the company reported better-than-expected second-quarter earnings and revenue that exceeded guidance. After touching a 15-month low of $16.35 yesterday, PERY is pacing for its best day in almost two years, and is poised to close above both its 10- and 20-week moving averages for only the second time in 2017.

If PERY can barrel through recent round-number resistance in the $20 region, the stock could enjoy a short squeeze. Short interest grew 9.5% during the most recent reporting period, and represents nearly seven sessions' worth of pent-up buying demand, at Perry Ellis stock's average pace of trading.

SJM Touches 2-Year Low After Cutting Guidance

Swimming in red ink today are shares of J.M. Smucker stock, last seen down 7.3% to trade at $110.18, after the company reported worse-than-expected fiscal first-quarter earnings and lowered its full-year guidance. Today's plunge sent SJM to a nearly two-year low of $108.60, and ranks the stock as the worst on the New York Stock Exchange (NYSE). SJM is now poised to close below its 50-month moving average for the first time since May 2009.

What's more, J.M. Smucker stock could be vulnerable to downgrades. One-third of the 12 analysts following the stock rate it a "buy" or better, leaving room for bearish notes, should the brokerage crowd decide to abandon ship.


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