It Could Be a 10% Off Sale at Ollie's

Broadline retailers ($DJUSRB) have been moving sideways relative to the benchmark S&P 500 for awhile now, but the group is actually nearing a key price breakout, attempting to clear its absolute price high from January 2025.

That's led to a lot of consolidation in individual names in the space, including Ollie's Bargain Outlet Holdings, Inc. (OLLI).

From the chart below, you can see that OLLI has been a leader in the broadline retail group, but has recently pulled back:

Enter Ollie's Bargain Outlet Holdings, Inc. (OLLI):

OLLI is 1 of 578 current stocks on our Strong Earnings ChartList (SECL), and it is totally deserving.

OLLI easily coasted by its consensus estimates for both revenue and EPS and gapped higher, but did not break out. That set the stock up for further short-term consolidation, which is exactly what it's done.

OLLI gapped higher to 138.69 after its quarterly results and has since pulled back to approach what I believe is excellent price support in the 121-123 area. The closer it gets to that range, the better the reward-to-risk looks. I'd fully expect to see OLLI return to its recent price high near 142 and ultimately break out above that level.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.