close icon

Do Not Write Hibbett Sports Off Just Yet

Hibbett Sports stock was trading above $68 per share for a while in December, 2013. Today, less than four years later, you could buy in for under $16. At one point last week, Hibbett was down by 81% from its all-time high. Such a severe crash could fill with doubts even the most devoted of shareholders. As if there is no light at the end of the tunnel and the stock is simply going to zero. Well, if that is what you have been thinking, the Elliott Wave Principle has some good news for you. As the chart below shows, Hibbett’s shoes might start shining again soon.
hibbett stock analysis
The logarithmic chart of HIBB stock allows us to recognize a complete five-wave impulse between January 1997 and December 2013, which has been developing within the parallel lines of a perfect trend channel. The sub-waves of waves III and V are also clearly visible. Just as the theory postulates, the impulsive pattern was followed by a retracement of similar magnitude, which erased almost all of the gains achieved by wave V. And that is precisely why we believe this stock has great upside potential. Corrections usually retrace back to the area of previous fourth waves. Here, Hibbett has already fallen to the support zone of wave IV of (I), which makes us think the negative phase of the wave cycle – wave (II) – is either over or near completion and the bulls should soon return. If this is the correct count, this is a long-term buying opportunity with a great risk/reward ratio. While Hibbett cannot fall below zero, the Wave Principle suggests it could trade near $70 a share again in some years’ time. Patience is key.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Electronic Arts Can Lose 50% in Elliott Wave Correction

Electronic Arts hasn’t been able to reach a new all-time high since July 2018, when it climbed to $151.26. However, the stock came close to that last month after the coronavirus panic in March was quickly forgotten. Currently near $127 a share, Electronic Arts holds a rather high valuation at 29 times its expected fiscal…

Read More »

Buffett’s DaVita Stock Looks Like a Bull Trap

Formerly known as DaVita HealthCare Partners Inc., DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease. It was founded in 1994 and went public a year later. As of this writing DaVita’s market cap is close to $10.7 billion. The interesting part is that it is…

Read More »

London Stock Exchange Stock Needs a Breather

Stock exchanges are the places where the shares of publicly traded companies change hands. But sometimes we forget that the exchanges themselves are operated by a company, as well. Usually, those companies are also public with their stocks trading on the exchange, too. That is exactly the case with the London Stock Exchange Group plc.…

Read More »

Yum! Stock to Form a Base Near $75 a Share

The coronavirus selloff hit the restaurant industry hard. With stores closing to prevent the virus from spreading, the stocks of McDonald’s, Starbucks, Dunkin and the like all came crashing down. Yum! Brands wasn’t spared either. YUM stock has been losing ground since the summer of 2019, but it was the COVID-19 crisis that really scared…

Read More »

Intel ‘s Troubles Fit in its Elliott Wave Correction

2020 is shaping up as a year to forget for Intel shareholders. The stock is down over 20% year-to-date. First, the coronavirus selloff caused a 35% plunge down to less than $44 a share. And just when it seemed INTC was recovering, the company announced it will delay its 7nm products until late 2022 or…

Read More »

Expedia Stock can Surge as Travel Returns

The coronavirus pandemic hit no other sector harder than travel. Lockdowns took a heavy toll on airlines, hotels and even rental car services as people postponed vacations and business trips were cancelled. Even asset-light companies like Booking and Expedia saw their stock prices plunging. Expedia, which was down 25% from its all-time high even before…

Read More »

Plus500 Confirms Uptrend, but Correction is Likely

Based in Haifa, Israel, Plus500 (LSE:PLUS) operates a leading CFD trading platform. The company is part of the FTSE 250 index and conducts most of its business in Europe and Australia. The new ESMA regulations which came in effect in August 2018 severely impacted the CFD trading industry. As a result, Plus500 stock fell from…

Read More »

More analyses