Lululemon & Jones Apparel, the most sought after

Thursday, 05 January 2012
The New Year has brought a good number of stocks to track, being Lululemon Athletica, Jones Apparel, Abercrombie&Fitch and Nike some of the most sought after by both investors and analysts.

Jones Apparel´s shares are actively trading 3.0% lower to $9.96, following FNNO analysis. Jones Apparel share prices have moved between a 52-week high of $16.02 and a 52-week low of $8.00 and are now trading 25% above that low price at $9.96 per share. Over the last five market days, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has declined 0.3%. "Potential upside of 45.6% exists for Jones Apparel, based on a current level of $9.96 and analysts' average consensus price target of $14.50. The stock should run into initial resistance at its 50-day moving average (MA) of $10.75 and subsequent resistance at its 200-day MA of $11.37," reported the Financial News Network Online (FNNO).

Meanwhile, Abercrombie & Fitch (NYSE:ANF) has opened bearishly below the pivot of $49.30 on Wednesday and has reached the first level of support at $48.35. "Investors may be interested in a cross of the next downside pivot targets of $47.85 and $46.40," highlighted. Abercrombie & Fitch (NYSE:ANF) has potential upside of 32.4% based on a current price of $48.27 and analysts' consensus price target of $63.92. Abercrombie & Fitch shares should first meet resistance at the 50-day moving average (MA) of $54.27 and find additional resistance at the 200-day MA of $64.42.

The third value under the spotlight in Wall Street was Lululemon Athletica Inc., which stock rose more than 5 percent on Wednesday after Goldman Sachs added the Canadian fitness-wear company to its list of top stock picks, citing its sales growth and appealing stock price. Lululemon has been one of the hottest chains in retailing thanks in part to the popularity of its high-priced yoga pants and tank tops. Over the last year, the stock has traded between $32.65 and $64.49.

Back to Europe, the new year rally on London leading shares index proved shortlived today as ongoing fears over the eurozone debt crisis once again took hold, reported This Money. The FTSE 100 Index lost hold of earlier gains, following a strong 2 per cent surge on Tuesday, and closed 31.5 points lower at 5668.5 following disappointing data from Europe and a weak show for retailers triggered by a disappointing update from high street giant Next.

Next was one of London's best performing stocks during 2011 but fell 3 per cent or 85p to 2656p as it said store sales in the run-up to Christmas were down 2.7 per cent, despite comparisons with the previous year's cold weather. "Trading over the peak period appears to have been weaker than feared in Retail. Coupled with concerns about employment and nervousness about the Eurozone, this has led management to issue cautious guidance for Jan’13 which may lead to downgrades of c3%. This is likely to weigh on the premium rated shares which have performed well recently," Singer Capital Markets suggested. Also Marks & Spencer, which posts figures next week, fell 8.2p to 308.8p.

Finally, weaker consumer spending is adding to the pinch, as the slowing global recovery hurts sales at companies including surf- accessory retailer Billabong International Ltd. (BBG) The Gold Coast- based surf-clothing maker’s stock plunged 78 percent last year. By comparison, Australia’s benchmark S&P/ASX 200 Index lost 15 percent.

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