Stocks that have recently indicated possible entry points according to technical indicators and currently trade within or are approaching their period of seasonal strength.Mattel, Inc. (NASDAQ:MAT)
The countdown to Christmas begins. We are now two month less one day away from the big day and chares of this toy company are putting the elves to work to make sure investors and Santa has everything needed for the event. Mattel, Inc. (NASDAQ:MAT) has been outperforming the market over the past few sessions after finding a bottom one week ago. Earnings were released on October 15 that beat expectations, however, the result failed to impress, driving shares sharply lower. The stock is now rebounding and technicals are lining up for possible buy signals. MAT continues to threaten overhead resistance at around $24.50 and with a period of seasonal strength approaching, a breakout may be imminent.
Seasonal tendencies are positive between now and December 6 for gains reaching 7% on average. Fourth quarter carries high expectations for this equity as it typically represents the most profitable quarter for the corporation that benefits greatly from the holiday season. Only one year has failed this trend in recent history. In 2008, expectations were 72 cents per share, however the company reported 49 cents per share, having been impacted by the downturn in the economy. Prospects have improved significantly since that time and analysts are expecting 86 cents per share for this last quarter of the fiscal year. Fundamental targets for shares of Mattel, Inc. (NASDAQ:MAT) are pegged at around $26.25, or over 11% higher than current levels.
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