Will Mounting Debt and Plunging Sales Force Sears (SHLD, $0.59) Into a Bankruptcy Filing?
Sears Holding , once a bustling retail chain in the U.S., might be preparing its bankruptcy filing, according to a Wall Street Journal report that cited anonymous sources familiar with the matter.
According to the report, the company has hired the services of M-III Partners to navigate the bankruptcy proceedings, as the retail giant is saddled with $134 million debt due on Oct. 15. Sears has had troubles meeting its debt obligations for a while, even as CEO Eddie Lampert drove several asset liquidations.
Hundreds of Sears and Kmart stores were shuttered down in recent years, amid plunging sales. As of latest quarter, the company has roughly 900 Sears and Kmart stores, compared with more than 4,000 when it merged with Kmart in 2005. Sears has apparently failed to catch up with the e-commerce boom spearheaded by Amazon coupled with traditional player Walmart’s expansion. According to some analysts, the company would need to generate more than $1 billion a year to keep operating - a target that looks too far off for the retailer to meet. Sears has burned through $1.8 billion in cash in its operations during 2017 alone.
Its CEO Eddie Lampert has, over time, tried to salvage the company by chipping in more than $1 billion into the retailer when other sources dried up. This time, if Lampert or other sources are unable to extricate Sears out of its debt troubles and dwindling business, the company could file for a bankruptcy this week, as some reports seem to suggest.
SHLD's RSI Indicator recovers from oversold territory
The RSI Oscillator for SHLD moved out of oversold territory on June 29, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 10 similar instances when the indicator left oversold territory. In of the 10 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 23, 2026. You may want to consider a long position or call options on SHLD as a result. In of 50 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SHLD just turned positive on July 22, 2026. Looking at past instances where SHLD's MACD turned positive, the stock continued to rise in of 27 cases over the following month. The odds of a continued upward trend are .
SHLD moved above its 50-day moving average on July 23, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SHLD advanced for three days, in of 224 cases, the price rose further within the following month. The odds of a continued upward trend are .
SHLD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHLD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SHLD entered a downward trend on July 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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