Urban Outfitters and TJX Companies reported vastly different earnings this morning
The retail sector is weighing two vastly different corporate reports today. Urban Outfitters, Inc. (NASDAQ:URBN) is sharply lower, while TJX Companies Inc (NYSE:TJX) is inching higher, as both stocks pass each other on the road to record highs.
URBN was last seen 12.9% lower to trade at $41.11, on track for its worst single-session drop since March 2020. The specialty retailer's fourth-quarter earnings and revenue both whiffed on estimates, yet four brokerages hiked their price targets, the highest coming from Wells Fargo to $47 from $38.
The shares are poised to snap a nine-day win streak that culminated in a record high of $47.29 yesterday. At the close last night, URBN's 14-Day Relative Strength Index (RSI) ballooned into overbought territory at 89, which partially explains he steep gap today. Despite today's drawdown, the stock is still 16% higher in 2024, with support getting tested at its 30-day moving average.
TJX is 0.9% higher to trade at $101.48, after the Marshalls-parent reported fourth-quarter revenue and same-store sales that both topped expectations, helping overshadow earnings that only met estimates. The shares hit a record high of $102.77 out of the gate, and are now 8.1% higher year-to-date.
A premium-selling strategy could be the move for both stocks. URBN and TJX sport Schaeffer's Volatility Scorecards (SVS) of 1 and 3, respectively, out of 100. In other words, both equities has consistently realized lower volatility than its options have priced in.
