Investors look to Lighten Up on Shares of Zale, Shares Down 6.9% (ZLC)

Published on Thu, 02/21/2013 - 13:23
By Robert Cotter in Market movers, zlc, nyse:zlc, penny stocks, zale

Zale (NYSE:ZLC) is one of today's worst performing low-priced stocks, down 6.9% to $4.07 on 2.0x average daily volume. Zale has traded 952,000 shares thus far today, vs. average volume of 475,000 shares per day. The stock has underperformed the Dow (-6.9% to the Dow's -0.4%) and underperformed the S&P 500 (-6.9% to the S&P's -0.7%) during today's trading.

Zale Corporation operates retail jewelry stores under the Zales and Gordon's names. The Company's stores are located primarily in shopping malls in the United States and Puerto Rico. Zales offers moderately priced jewelry and Gordon's offers merchandise at somewhat higher prices.

Zale has overhead space with shares priced $4.07, or 45.7% below the average consensus analyst price target of $7.50. Zale shares should first meet resistance at the 200-day moving average (MA) of $4.44 and find additional resistance at the 50-day MA of $4.60.

In the past 52 weeks, shares of Zale have traded between a low of $2.18 and a high of $7.66 and are now at $4.07, which is 87% above that low price. The 200-day and 50-day moving averages have moved 0.42% higher and 0.11% lower over the past week, respectively.

By Robert Cotter
rcotter@fnno.com

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