Image Source: Pixabay

Summary

Aritzia (ATZAF) is an integrated fashion design house showing strong technical momentum and consistent price appreciation, recently hitting an all-time high.

ATZAF has a 100% “Buy” opinion from Barchart, a Trend Seeker “Buy” signal, and has gained 118.88% over the past year.

Fundamentals are robust, with projected revenue and earnings growth exceeding 20% and 30% respectively for the next two years.

Analyst sentiment is bullish, with multiple 'Strong Buy' ratings, though Morningstar notes the stock may be overvalued at current levels.

Today’s Featured Stock

Valued at $8.26 billion, Aritzia is an integrated design house of exclusive fashion brands. It designs apparel and accessories for its collection of exclusive brands and sells them under the Aritzia banner. The category of products offered by the firm is blouses, T-shirts, pants, dresses, sweaters, jackets and coats, skirts, shorts, jumpsuits, and accessories. The company reports as a single segment and includes all sales channels accessed by the company's clients, including sales through the company's eCommerce website and sales at the company's boutiques. Its geographical segments include Canada and the United States. The company generates the majority of its revenue from Retail, followed by e-commerce. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ATZAF checks those boxes. Since the Trend Seeker signaled a new “Buy” on Oct. 16, the stock has gained 11.57%.

ATZAF (Barchart)

Barchart Technical Indicators for Aritzia

Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Aritzia hit an all-time high of $71.41 in intraday trading on Oct. 3.

• ATZAF has a Weighted Alpha of +128.68.
• Aritzia has a 100% “Buy” opinion from Barchart.
• The stock gained 118.88% over the past year.
• ATZAF has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $71.41 with a 50-day moving average of $62.55.
• Aritzia has made 7 new highs and gained 20.46% in the last month.
• Relative Strength Index (RSI) is at 70.20.
• There’s a technical support level around $70.47.

Don’t Forget the Fundamentals

• $8.26 billion market capitalization.
• 41.52x trailing price-earnings ratio.
• Revenue is projected to grow 22.61% this year and another 13.08% next year.
• Earnings are estimated to increase 33.70% this year and an additional 30.65% next year.

Analyst and Investor Sentiment on Aritzia

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are high on ATZAF.

• The Wall Street analysts tracked by Barchart have issued 9 “Strong Buys,” and 3 "Buys" opinions on the stock.
• Value Line rates the stock “Above Average” with a price target of $122. ul year.”
• CFRA’s MarketScope Advisor rates it a “Buy”.
• Morningstar thinks the stock is 29% over valued.
• 2,760 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold”.

The Bottom Line on Aritzia

Although Morningstar focuses on the high price-earnings ratio, Wall Street analysts seem to be bullish.

More By This Author:

America Express Is Popular With Both Travelers And Investors
Ahead Of Earnings, Everybody Loves AMD Stock
McKesson - This ‘Strong Buy’ Healthcare Stock Just Hit New All-Time High