Retail Stocks DECK, DG Get Bull Notes to Start Trading Week

DECK and DG stocks are in the analyst spotlight this morning

by Josh Selway

Published on Aug 19, 2019 at 9:23 AM
Updated on Jun 24, 2020 at 10:16 AM

Deckers Outdoor Corp (NYSE:DECK) is one stock that could be in for a strong session today, after Pivotal Research upgraded the shares to "buy" from "hold," saying the recent pullback marks an attractive entry point. DECK stock was testing the $180 a month ago, but then gapped lower, closing Friday at $134.29. The equity does seem to be finding support at the 320-day moving average, and the 14-day Relative Strength Index (RSI) settled in oversold territory at 26 last week, suggesting the retail name could be due to bounce. 

Near-term options traders are seemingly positioned for a move higher. Specifically, the Schaeffer's put/call open interest ratio (SOIR) right now is 0.70, ranking in the bottom percentile of its annual range. Said differently, speculators targeting contracts expiring within three months are unusually call-heavy right now. On the other hand, Pivotal Research's outlook goes against the view of other analysts, most of whom have "hold" recommendations on the stock.

Another retail stock in focus this morning is Dollar General Corp (NYSE:DG), as it received yet another bull note. This time it was J.P. Morgan Securities that weighed in on the discount retailer, saying its projecting strong same-store sales for the company, raising its price-target in the process to $153 from $145.

DG shares have been testing their 50-day moving average in recent days, closing Friday at $135.91, less than one point below this trendline. Overall, the stock is up 25.7% in 2019, hitting a record high of $145.06 roughly one month ago. Recent options traders seemed to be betting on more upside, since the September 150 call saw the largest increase in open interest during the last two weeks.


A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!