Though the retail industry at large is expecting a long, grueling recovery from the 2020 financial crisis, one retail stock is thriving after reopening 1,600 stores across the United States.
That’s why Chris Johnson has zeroed in on this stock as your next money-doubling trade in this week’s episode of Fast Profits with Money Morning…
Customers have been braving public spaces in droves to visit its brick-and-mortar locations and tear through its deals on off-price designer goods.
In a Q1 earnings report issued just before the holiday weekend, this company’s CEO said, “We have been encouraged with the very strong sales we have seen with our initial reopenings.”
He believes the “treasure hunt” retail experience in combination with pent-up demand will continue to drive business – and profitability – through the remainder of the fiscal year.
And of course, it wouldn’t be a Chris Johnson-approved trade without a strong technical indicator backing up his recommendation – this stock just blew through it’s 200-day moving average.
Essentially this tells us this stock is valued higher than its own long-term closing pattern, a clear sign that a breakout is imminent.
Analysts are expecting this stock to pop anywhere from 20% to 40%, but with an option play, you could leverage this stock move for even bigger profits.
Here’s Chris with the details…
Make a Killing in Any Market Climate
Action to Take No. 1: Buy shares of The TJX Cos. Inc. (NYSE: TJX) at market.
Action to Take No. 2: Buy to open TJX Oct. 16, 2020 $57.50 (TJX201016P00057500) with a limit order of $5.
Source: Money Morning