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Tickers in this Article: FDO, WMT, YUM, EXR
The market has been under pressure since the Fed statement earlier this week and many stocks have been driven lower. One indicator that follows stocks trading over their 40-day moving averages has plummeted to 32% from near 65% in just a couple of weeks. However, not all stocks have reversed course, and many stocks are simply continuing to consolidate. Overall, the market indexes are getting oversold and are still near some possible support levels, so it is still feasible that a market bounce can occur in the coming days. As such, stocks that are still healthy stand a good chance to lead the way higher on any market strength. While plenty of momentum stocks have been getting hammered, many stocks that may be considered unattractive remain quite healthy.

It may not seem glamorous, but discount chain, Family Dollar Stores, Inc. (NYSE:FDO) has been in a steady uptrend since early 2008. While the long-term trend has been clearly higher, FDO has experienced some volatility this year along with the markets. It suffered through a sharp pullback in August, but recovered quickly and pushed to new yearly highs a few months later. FDO has since fallen into an orderly consolidation and could be cementing the mid $50s as support. Any market strength could support the chances for an FDO breakout.




Another stock showing good relative strength is Extra Space Storage, Inc. (NYSE:EXR). Once again, being a REIT, it's not from a glamorous sector, but EXR has been moving steadily higher for two years. It recently broke above a base and then a secondary consolidation. It is currently pulling back to test $23 as support and should find buyers in this area, especially if the markets cooperate. All-time highs are just above $24, so EXR could easily gain some momentum on any strength.




Fast food conglomerate, Yum! Brands, Inc. (NYSE:YUM ) is another stock that may not seem like a sexy pick, but it has held up through the recent market weakness and is also near all-time highs. YUM cleared a complex base it had been forming for all of 2011 after the recent breakout that took it to its all-time highs. It is now pulling back off those highs, but has held up quite well through the weakness of the past few days. This market has been quite unforgiving for breakouts, so any stock that can hold a breakout is worth paying attention to.




Retail superstore giant Wal-Mart Stores, Inc. (NYSE:WMT) also may not be thought of as a sexy stock pick. However, it too has remained fairly healthy and is trading near its recent highs. It recently cleared some resistance near $53 and rallied to near $59. It has been consolidating in this area nicely as it follows its 20-day moving average. One thing to keep in mind though is that WMT has been trading between $42 and $63 for 10 years. It is close to the top of this multi-year range, so the real question will be if it can challenge for a multi-year breakout or not. (For related reading, check out Investors Have Unplugged Best Buy.)




The Bottom Line
Often traders get caught up with chasing whatever momentum stock is currently hot, while ignoring some of the more boring names. While momentum stocks certainly have their place, traders should not ignore healthy stocks that are trending higher simply because they may appear boring. These stocks are all showing good relative strength and could gain some steam if the markets bounce from oversold conditions.

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At the time of writing, Joey Fundora did not own shares in any of the companies mentioned in this article.

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