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Staples - NASDAQ 100 Enigma

|Includes: Staples, Inc. (SPLS)

Today I used Barchart to sort the NASDAQ 100 Index stocks to find the ones with the most frequent new highs in the last month and Staples(NASDAQ:SPLS) the office supplies retailer was on the top of the list. As I further researched the stock I have no idea why?

Barchart technical indicators:

 

  • 96% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 13 new highs and up 30.32% in the last year
  • Relative Strength Index 86.29%
  • Barchart computes a technical support level at 17.48
  • Recently traded at 18.13 with a 50 day moving average of 14.17


Fundamental factors:

 

  • Market Cap $11.59 billion
  • P/E 17.83
  • Dividend yield 2.69%
  • Revenue expected to shrink 2.40% this year and another 1.60% next year
  • Earnings estimated to decrease by 3.34% annually for the next 5 years
  • Wall Street analysts recommendations are all over the map with 1 strong buy, 1 buy, 14 hold, 3 under perform and a sell call on this stock


The 20-100 Day MACD has been the most consistent trading strategy on this stock. Since revenue and earnings forecasts are negative and even the Analysts are in conflict I'd recommend a moving stop loss about 10% below the current high to protect your profits.