Sell Ingles Market (IMKTA)
We’re going to step away from Ingles Market (IMKTA) today and book a modest, single-digit loss on the name. I’ve had IMKTA on a short leash following the stock’s reversal soon after it hit an all-time high on August 23.
Over the last two weeks, we’ve seen IMKTA trade around its 200-day line, and over the last two days, the stock has fallen a few points below it. That alone isn’t necessarily an indication we should get out. But as I look around at other grocery store stocks (SFM, GO, even KR) and see some weakness, and considering that IMKTA hasn’t fallen below its 200-day line since it broke above it way back at the end of 2020, my confidence in its near-term performance potential is shaken.
I like the story and the stock and will keep IMKTA on my watch list for future inclusion. Maybe a more significant pullback will set up a buying opportunity down the road. For now, let’s just step aside and keep an eye on it. SELL