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Dillard's, Weight Watchers Stocks Try to Break Out on Bull Notes

The 160-day trendline could be blocking more upside for DDS

Jul 11, 2019 at 1:26 PM
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Stocks are soaring to new highs again thanks to all the excitement around a potential cut in interest rates. Three names making moves you should monitor are retailer Dillard's, Inc. (NYSE:DDS), diet specialist Weight Watchers International, Inc. (NASDAQ:WW), and clinical stage biopharma concern Immunic Inc (NASDAQ:IMUX). Here's what moving the shares of DDS, WW, and IMUX.

Wedbush Note Boosts DDS

The shares of DDS are near the top of the New York Stock Exchange today thanks to bullish analyst attention. At last check, the stock was up 6% at $64.02, after Wedbush upgraded its rating to "neutral," and lifted its price target to $62, citing strong promotional data and search trends in recent weeks. While this extends a recent uptrend in Dillard's since its late-May lows in the low-to-mid $50s, the 160-day moving average has stepped in as a stiff ceiling.

There is a ton of pessimism around the stock, evidenced by the fact that almost half of the float is dedicated to short interest. Going by average daily trading volumes, it'd take these bears 17 days to cover their positions, suggesting short-covering tailwinds are possible if DDS can take out its technical resistance.

J. P. Morgan a Little Less Cautious on WW Stock

Weight Watchers stock is also trying to break out on an analyst upgrade. J.P. Morgan Securities this morning moved its rating up to "neutral" from "underweight," and added $5 to its price target to make it $22. The analyst note suggested subscriber trends should be more stable in the near term, though the stock could remain volatile until the company provides more details on its new diet program later this year.

While this would mark a fourth straight win for WW shares and their highest close since late February, last seen up 7.4% at $23.46, they again topped out at the $24 level that also represented their peak after a bull gap in May. Plus, the equity remains more than 10 points below its 200-day moving average. The vast majority of covering brokerage firms remain on the fence, with eight "hold" ratings on the books.

IMUX Makes Massive Move

IMUX has become one of the best Nasdaq stocks today due to a new "buy" rating at Chardan Capital Markets, which set a massive $40 price target on a security that closed Wednesday at just $10.94. Today, the shares have soared 54% to trade at $16.85, testing the $18 mark that acted as resistance in late June. Longer term, though, the chart really breaks down, since Immunic was around $300 a share this time last year.

 

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