Given the rotation out of tech stocks (at least for the moment), we could be setting up for another round of gains in tech once the selling dust settles, notes Jim Woods, co-editor with Mark Skousen of Fast Money Alert.
We’ll be watching for just that in the weeks to come; however, today there are some very strong fast money candidates out there that are largely immune to the tech selling.
Moreover, some candidates out there are immune to tariff and trade war fears, and are thriving in an economy that just racked up 4.1% Q2 gross domestic product (GDP) growth. One such company is luxury retailer Tiffany & Co. (TIF).
The retailer’s shares surged some 20% on May 23 after the company roared past expectations on the top and bottom lines, and on the all-important same-store sales metric. Tiffany also raised its full-year guidance and approved a $1 billion buyback.
The bullishness in TIF since then has continued. In the past three months, Tiffany shares are up nearly 33%. We expect those gains to continue leading into the Aug. 23 expected reporting date for the company’s next quarterly results.
We also suspect the gains in TIF shares will continue to prosper, especially if the fast money begins a sustained rotation away from the biggest market leader, technology, and into “strong economy” stocks, such as retail and industrial.
And if that rotation is retail, then you want to be in the top-ranked stock in the space, one that has outpaced 93% of all other publicly traded companies in terms of share-price performance over the past 52 weeks. So, let’s buy luxury retailer Tiffany & Co. at market, with a protective stop set at $115.22.
