Apparel makers and retailers have had a solid run in 2018. Top stock Michael Kors (KORS) is working on a new possible base even as it trades in buy range. Dow Jones stock Nike (NKE) is just beyond a 5% chase zone. Columbia Sportswear (COLM) and Canada Goose (GOOS) are setting up again after post-earnings retreats. Michael Kors stock, Nike stock and Columbia Sportswear stock all boast an IBD Composite Rating above 90.
XMichael Kors Stock
Michael Kors stock is in range from a 14-week consolidation with a 70.10 buy point, MarketSmith analysis shows. However it could soon forge a new flat base with a 76.06 entry as part of a base-on-base pattern. Michael Kors stock closed at 72.69 on the market Friday.
Kors' relative strength line, which tracks a stock's performance vs. the S&P 500 index, has made little headway in 2018, suggesting its been neither a leader not a laggard.
Back in August, Michael Kors bested fiscal first-quarter earnings estimates, with sales growth accelerating for a fourth straight quarter. The fashion house raised its 2018 outlook above consensus views.
Michael Kors stock broke out of the 14-week consolidation on that Q1 earnings report and guidance.
CFRA Research senior analyst Angelo Zino raised his price target for Michael Kors stock to 70 from 65 and maintained a hold rating. However he sees some challenges ahead due to heightened inventory levels.
Nike Stock
Nike stock is just extended from an 81.10 flat-base buy point, with a chase zone that runs up to 85.16. Shares dipped into buy range Friday afternoon but closed at 85.55. The RS line is near record highs. Nike stock currently leads the Apparel-Shoes & Related Manufacturing group.
Nike stock got a boost on reports its sales have rocketed since it launched its controversial ad campaign featuring former NFL player Colin Kaepernick. The top stock had taken a brief hit from initial backlash to the campaign, however it soon bounced back. Canaccord Genuity analyst Camilo Lyon hailed the Nike campaign, saying it was a move of "genius" and a "sign of strength."
Columbia Sportswear Stock
Columbia Sportswear is approaching a 95.68 entry from a nine-week flat base.
The top stock has rallied strongly in 2018 but fell sharply on July 27 following its last earnings report, marking the low of the current consolidation. Shares have been recovering, albeit largely on below-average volume, suggesting little buying by mutual funds and other big institutions. The RS line also made little progress from that late July low and has been drifting lower in recent weeks.
Columbia Sportswear stock boasts an excellent IBD Composite Rating of 98. It also currently leads the competitive Apparel-Clothing Manufacturing group, which includes Michael Kors and Canada Goose.
Canada Goose Stock
Canada Goose stock is working toward a buy point of 68.85 from a 14-week consolidation. However, the stock has to overcome some challenges before it hits buy zone. It is currently struggling to retake its 50-day line, a key technical mark. Its RS line is closer to the lows of its consolidation vs. the high.
Canada Goose stock has skyrocketed 448% since its March 2017 IPO price of 12.78. The former IBD IPO Leader is known for its $1,000 parkas. But the Canadian firm also makes vests, hats, gloves and other apparel. Its products have been featured in several films, while model Kate Upton made an eye-catching appearance on the cover of the 2013 Sports Illustrated Swimsuit Issue in a Canada Goose parka.
Canada Goose stock has a good-not-great Composite Rating of 85, largely due to a so-so 73 EPS Rating. That may reflect lumpy earnings, as Goose tends to lose money in the summer.
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