The stock is trading in a bullish trend and several arguments could lead the continuation of this movement.
PetSmart is a specialty retailer of products and services for pets. The company operates pet superstores in North America, as well as a pet supply catalog business, and an equity interest in PetSmart.com. The company provides pet food and supplies, and offers full-service veterinary, grooming and pet training services.

Analysts have, many times, revised upward their forecasts concerning Financial year 2012 earnings per share to $3.30. The company for the first quarter has beaten estimates with EPS of $0.85 against consensus of $0.73. The next challenge for the company is coping with competitive environment with the grocer and discount channels raising their efforts in the pet category.

Technically, the share shows a bullish trend on all periods. This movement is supported by moving averages, especially in weekly data where 20 periods moving average is well oriented. In addition, in weekly data the share has broken out the USD 59 resistance. After last earnings release on 25th May, the investors’ attention came back, as attested by important volumes in the past trading sessions, and for this reason we imagine new bullish acceleration.

We fix a target price at USD 70, and we suggest a stop loss at USD 62 in order to cover the position.