I’ve talked before about “mall rats” stocks that have seen improved cash flows and generally had great performances in 2023.
Abercrombie & Fitch (ANF) is up over 230% on the year.
Macy’s just started a big bounce, up 50% on the quarter.
And the retail sector ETF, XRT, has seen a hard bounce and is up nearly 12% on the year.
In fact, this stock has underperformed the sector for a while now. Here’s its performance relative to the sector:
Expect This Retail Stock to Resurge in 2024
And I get it. Every time I go into this store, I’m underwhelmed.
But that’s just me, because I don’t like shopping in department stores…
So I did some channel checks which involved asking my wife and some of the neighbors about it.
It seems that my opinion is my own, and other people love going here to shop. Who knew?
Besides being a rather boring company, it’s been a boring stock. You don’t see a lot of insiders playing this…
But when they do, it tends to be near the bottom.
I actually noticed heavy insider buying in this name way back in March.
The CEO of the company went out and purchased $2 million worth of stock in the low 20s – a serious conviction buy.
You also had some earlier buys in the 29-30 range from late 2022, and some of these company insiders also bought the crash in 2020.
That means we have a cluster buy, a high-conviction first-time buy from the CEO, and a few perfect-track-record insiders who have purchased the stock at very opportune times in the past.
It’s been nearly nine months since the insider purchase from the CEO. I avoided it because it was trading near 52 week lows and I wanted to see some improved price action and some changes in the company, and now we’re seeing both.
It’s time to buy this stock. I’ve already alerted my paid members with the full details, including what price to target for an entry, where to place stops, and a simple call option play that can amplify earning potential.
If you’re ready to learn more about how we follow these insiders to serious stock moves, click here to watch a full interview where I explain the whole thing (including how you can get started today).
