One of the worst performances of November could soon see a sustained return.
A review of some of the biggest S&P 500 laggards that month had a takeaway from two traders, not including:
The above declines are close to Wednesday.
CNPBC’s “Trading Nation” said Wednesday, “many of these turkeys have … definitely breached violations this month,” said Craig Johnson, senior technical analyst at Peeple Sandler, but one of them here Is probably to be forgiven.
He cited a chart of stock from clothing company Hanesbrands, which he said recently reversed the decline that stems from its 2015 highs.
Johnson noted, “Note that the stock has pulled the right-back – the 200-day moving average has closed, and the 50-day moving average has begun to cross above the 200-day moving average. , “Johnson said.
Analysts say that since last year, Hansbrands may start taking shares higher.
“[It] As for what it looks like, for us, we can probably see a step back for high teens, which could give you about 30% upside, “Johnson said.” So, it doesn’t look like this is one for the stuffing yet. It looks like one that we should buy at this time. Pour a little more on the plate – and a little more gravy. “
Gina Sanchez, founder and CEO and chief market strategist of Chantico Global at Lido Advisors, also saw potential at Hanesbrands.
“This is what we saw in the shortest stocks by hedge fund players,” he said in the same “Trading Nation” interview.
The overreaching short selling thesis was built on three pillars, Sanchez said: the competition of encroachment in underwear and active clothing; Hansbrands’ high operating leverage is tied to owning its own manufacturing facilities; And Kovid-19 Pandemic Brick and Mortar, a major distribution channel.
The CEO said, “What he did not plan on was that Hansbrands managed to get a government contract to build personal safety gear.” “Now, they are able to take a huge liability – their manufacturing facilities – and turn it into a huge positive.”
The venture has helped Hansebrands make “streamlined profits of more than $ 750 million”, with Sanchez saying that “going forward, they are hoping that the PPE business is likely to fall” to about $ 150 million.
With most investors expected to recover financially, Hanesbrands may not need that revenue stream for long, he said.
He said, “I think with the reopening of the economy a lot of their business is going on and it is cheap and it pays a good dividend which is quite sustainable.” “So, there is a reason to own this stock.”
Hanesbrands shares traded down more than 2% on Wednesday at $ 14.50.
S&P and the Dow slipped to lower-than-normal trading volumes as Wall Street digested data on dismal claims ahead of the Thanksgiving market holiday. They are up 11% and almost 13% respectively in November.
Disclosure: Piper will purchase and sell securities on the main basis for Sandler Danher.