CHS - Chico's FAS: No Margin Of Safety At Current Levels
- Chico's FAS is one of the top-performing stocks this year, up more than 280% year-to-date, trouncing the performance of the Retail Sector.
- This exceptional performance has been driven by a continued turnaround and solid Q1 results, with Soma continuing to perform incredibly, with high double-digit positive comps vs. 2019.
- However, Chico's FAS is heading into Q2 earnings next week at its most overbought condition in the past decade, trading more than 160% above its 85-week moving average.
- So, while the fundamental picture is improving thanks to several new appointments and a digital-first focus, I don't see any way to justify chasing the stock here above $6.20.
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Chico's FAS: No Margin Of Safety At Current Levels