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home » stocks in the news
Stocks in the News
Tony Golan
Chief Technical Analyst
StockProfit.com™
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PetSmart, Inc. (PETM) posted second-quarter results that topped expectations Friday. The company reported solid revenue growth , rising 11 from last year to $1.24 billion, slightly beating the $1.22 billion consensus estimate. Earnings per share declined 17% to $0.30, which beat analysts' estimates of $0.28 per share. For the full fiscal year, PETM expects to earn between $1.51 and $1.59 per share, versus a consensus estimate of $1.49.
In reaction to the news, PETM stock was up $2.58 to close at 27.00, a gain of 10.6%.
Technically, PETM is almost there. With Friday's rally, the stock is now trading 17% above the 200-day moving average and at a new high for the year. Relative Strength Differential (RSD) is at 24, just a hair below the minimum threshold of 25. If there is going to be any follow-through at all to Friday's rally, PETM's RSD will be over 25 and it will then be strong enough to be considered as a candidate for a buy.
This is one of those examples where the stock's price action confirms the bullish news and indicates the stock is responding to the news as it should. Keep PETM on your radar screen because it won't take much for it to catch fire here.
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