Well, the market took a crazy beating on Tuesday. Investors clearly started freaking out about the wider ramifications of the debt crisis in Greece, and sent equities plummeting.
But today, we’ll look at one that bucked the trend, Designer Shoe Warehouse (DSW).
It’s easy to get discouraged on a day like this. But remember: Every market decline is followed by a new uptrend.
And one of the crucial things to do while you wait for the market to find its footing is to keep trolling for stocks whose price and volume action are outpacing the indexes. On Tuesday, there were precious few names meeting that description. But here’s a look at one of them, Designer Shoe Warehouse (DSW).
The stock made a 16% price jump Tuesday after the company raised full-year profit guidance. It’s been consolidating gains since reaching a new price high in mid-March. Fundamentally, it’s also been strengthening, with improving earnings growth recently (a turnaround, after some erratic quarters in 2008 and 2009), and sales growth has been accelerating.
DSW sells designer and brand-name shoes for men and women at a steep discount. It operates stores in 37 states. Retailers and consumer-oriented stocks in general have done well lately, as Americans and folks around the world are in a mood to spend a little money again, after clamping down so much during the recession.
I recently wrote about Rue 21 (RUE), and that stock is another example of a clothing retailer that’s continuing to show fundamental and technical strength.
Even as I write this, Jones Apparel (JNY) and Gildan Activewear (GIL) are climbing in above-average volume. Don’t let yourself be brainwashed by so-called conventional wisdom that consumers are still loathe to shell out any bucks. The opportunities are right in front of you, in the areas of clothing, retail and consumer goods — so you don’t want to miss out!
Designer Shoe Warehouse is pulling back slightly today, which is not unusual after such a huge move. Keep an eye on this one for additional opportunities to buy on the dips.
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