Year-to-date (YTD) gains of 45.47% for shares of The TJX Companies, Inc. (TJX), 24.93% for shares of Ross Stores, Inc. (ROST) and 38.96% for shares of Nordstrom, Inc. (JWN) tell a story of unusual bullish trading activity accompanying the moves. The main criteria we look for when betting on upside in a stock are improving fundamentals, leading technicals and bullish trading activity in the shares. I'll go into the fundamental picture later, but the true tell on the near-term trajectory of a stock lies in the trading activity.

In 2018, these stocks have increased in price alongside an increase in volume. This can be indicative of smart money accumulating shares. The bottom line here is that the manner in which a stock trades can oftentimes alert you to the forward fundamental picture more so than by simply looking at a company's financials alone.

For Mapsignals, the strongest indicator of positive price momentum is obtained by measuring potential institutional buying in the shares. This year, TJX stock has logged 25 of these rare signals (see chart). We like to see continual bullish activity in the shares alongside solid forward fundamentals, as this indicates that demand for the stock should increase

Chart showing unusual activity signals made by TJX Companies, Inc. (TJX) stock

In the chart below, TJX stock is near its 52-week high. The shares are seeing demand and should see high

When we decide on the strongest candidate for long-term growth, we consider many technical areas important to success. A few of these factors for TJX are a

  • YTD outperformance vs. market: +44.54% vs. SPDR S&P 500 ETF (SPY)
  • YTD outperformance vs. sector: +40.73% vs. Consumer Discretionary Sel. Sect. SPDR ETF (XLY)
  • Bullish unusual trading si

On top of a great technical picture, one should also look under the hood to see if the fundamental picture supports a long-term investment. As you can see, TJX has sol

  • Q2 2018 year-over-year (YoY) net sales growth rate: +12%
  • Q2 2018 YoY EPS growth rate: +

Next up is Ross Stores, which this year has logged 12 of these rare signals (s

Chart showing unusual activity signals made by Ross Stores, Inc. (ROST) stock

In the chart below, Ross Stores stock is at 52-week highs. The shares are seeing demand and should see high

When we decide on the strongest candidate for long-term growth, we consider many technical areas important to success. A few of these factors for Ross Stores are a

  • YTD outperformance vs. market: +24% vs. SPDR S&P 500 ETF (SPY)
  • YTD outperformance vs. sector: +20.19% vs. Consumer Discretionary Sel. Sect. SPDR ETF (XLY)
  • Bullish unusual trading si

On top of a great technical picture, one should also look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Ross Stores i

  • Q2 2018 YoY sales growth rate: +9%
  • Q2 2018 YoY EPS growth rate: +

Last up is Nordstrom, which this year has logged 13 of these rare signals (s

Chart showing unusual activity signals made by Nordstrom, Inc. (JWN) stock

In the chart below, Nordstrom stock is at 52-week highs. The shares are seeing demand and should see high

When we decide on the strongest candidate for long-term growth, we consider many technical areas important to success. A few of these factors for Nordstrom are

  • YTD outperformance vs. market: +38.03% vs. SPDR S&P 500 ETF (SPY)
  • YTD outperformance vs. sector: +34.22% vs. Consumer Discretionary Sel. Sect. SPDR ETF (XLY)
  • Bullish unusual trading si

On top of a great technical picture, one should also look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Nordstrom i

  • Q2 2018 YoY net sales growth rate: +7.1%
  • Q2 2018 YoY net earnings growth rate: +4

The Bottom Line

Shares of TJX, Ross Stores and Nordstrom represent a potential buying opportunity for the long-term investor. Given the solid sales growth, earnings growth and multiple unusual accumulation signals, these stocks could be worth a spot in an growth-oriented

To learn more about Mapsignals' institutional signals, please visit our "About Us" page<

Disclosure: The author holds no position in the securities mentioned at the time of publica

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