Big lots could see a big move this week after winning.
The department store operator’s implied volatility – how far its stock could move up or down according to its earnings report on Friday – is higher than it has been in recent years, Piper Sandler’s Craig Johnson told CNBC last week.
Overall, the stock has “pretty constructive bias on earnings pressure,” the company’s senior technical research analyst said on CNBC’s Trading Nation on Friday.
“They had a bit of a bullish flag that was forming,” said Johnson, referring to the Big Lots stock chart. “The $ 64 level being retested is a pretty big overhead resistance level, and any kind of pause above it would be a good indication of another higher leg unfolding.”
Big Lots stock rose 1.5% on Friday to $ 63.54.
“I’d also like to point out that the relative strength trend is improving versus the S&P 500,” said Johnson. “In the options setup … it looks like you have about 14% implicit pull on this pressure, which is a bit bigger than what we’ve seen in the last 10 years … playing that me think it makes a lot of sense to go into printing for a long time. “
A 14% increase would bring Big Lots stock to around $ 72.50. A 14% decline would leave the stock at around $ 54.60 per share.
Also aiming is one to be seen ahead of Tuesday’s earnings report, said Gina Sanchez, founder and CEO of Chantico Global and chief market strategist at Lido Advisors.
“The Lido Recovery Portfolio has established a position in Target,” she said in the same interview with Trading Nation. “If you look at Target’s performance, they just knocked them down during the pandemic. They made very strong sales, but they also improved their e-commerce game.”
If Target’s e-commerce metrics are roughly the same as last quarter, which was up 102%, it could help the stock, Sanchez said.
“It’s a massive part of their story, and the prospect for Target is getting better, and yet their ratings are actually … cheaper than other benchmarks [and] They have bigger margins, “she said.” So overall, we think Target is something to watch. “
Disclosure: Piper Sandler is a registered market maker for Target. Lido Advisors owns shares in Target.
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