Should Traders Get Their Hands on Hansen?
While some of the Nasdaq’s food and beverage stocks are plunging lower in bear market territory (I’m talking about you ^GMCR^ and ^DMND^ …), others like ^HANS^ are becoming cheaper while trading above the 200-day. And for traders looking for stocks coming off of significant long-term highs, HANS may fit the bill.
Shares of HANS have closed lower for four days in a row. This selling has put the stock in oversold territory for a second consecutive session, and at fresh 10-day closing lows.
Even more to the point, the pullback in HANS has given the stock a ratings upgrade to 8 out of 10 for a second day in a row. This puts the stock into our “consider buying” category heading into trading on Friday.
The last time shares of Hansen Natural earned ratings of 8 out of 10 or higher was the day after the Thanksgiving holiday. After a pullback during which the stock sold-off for six out of seven sessions, shares of HANS rallied by more than 2% one day later, and by more than 9% five days later.
That said, traders should be alert to the possibility of further downside in HANS – and potential ratings upgrades – if the broader market reverses lower, potentially dragging HANS with it.
Are there other stocks in this group – Nasdaq food and beverage – that traders should keep in mind heading into the final trading day of the week?
A four-day rally into overbought territory above the 200-day moving average brought out the profit-takers in the market for shares of ^SMBL^. The stock sold off by more than 6% ahead of trading on Friday, but will require additional selling before reaching oversold territory.
Outside of the Nasdaq, Pilgrim’s Pride ^PPC^ pulled back by more than 2%, finishing lower for a fourth day in a row on Thursday.
The stocks in today’s report were drawn from the data and research available through PowerRatings. To find out more, click here.
David Penn is Editor in Chief of TradingMarkets.com