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3 Red-Hot Stocks (And 3 That Aren’t)

William Roth

U.S. large-cap stocks pushed higher again on Monday, with the S&P 500 posting a modest gain thanks to a surge in widely held momentum favorites in the technology sector. But the strength is uneven, with a number of sectors lagging badly. Healthcare in particular is falling behind, with a loss of 0.9%.

The catalyst for the ongoing rise is the good feelings related to the dovish tilt by the Federal Reserve in recent weeks, with chairman Jerome Powell changing his tune on both the likely path of rate hikes this year and the ongoing drawdown of balance sheet assets.

The rally has pushed the S&P 500 up nearly 16% from the low set in late December, with the index now closing in on its 200-day moving average — a level that proved to be difficult resistance throughout the end of 2018. If a breakthrough is going to happen, it depends on whether the market follows the strength or the weakness of the following six stocks:

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Hot Stocks: Apple (AAPL)

Apple (NASDAQ:AAPL) shares are extending their recent breakout above their 50-day moving average, capping a 20% one off of its early January low thanks to good earnings results and budding excitement over the iPhone refresh coming later this year (with rumors of a three-camera setup). There is also a sense the company has regained some momentum with the well received iPad Pro as well.

The company will next report results on April 30 after the close. Analysts are looking for earnings of $2.38 per share on revenues of $57.6 billion. When the company last reported on Jan. 29, earnings of $4.18 per share beat estimates by a penny on a 4.5% decline in revenues.


Hot Stocks: Boeing (BA)

Hot Stocks: Boeing (BA)

Boeing (NYSE:BA) shares are pushing above their October high to break free into clean air, ending a sideways consolidation that started in late 2017, as the demand for new airlines seems insatiable amid bloated order books and increased travel activity. The company’s recently reported earnings were a blowout, and more is expected as production ramps up.

Analysts at Canaccord Genuity raised their price target to $380 on what they see as little risk to management’s forward guidance. The company will next report results on April 24 before the bell. Analysts are looking for earnings of $4.25 per share on revenues of $25.2 billion.

When the company last reported on Jan. 30, earnings of $5.48 beat estimates by 93 cents on a 14.4% rise in revenues.


Hot Stocks: Microsoft (MSFT)

Hot Stocks: Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) shares are revving up, cutting back above both their 50-day and 200-day moving average as the company adopts a position as the quiet, more professional member of the mega-cap tech stock cohort with its steady focus on corporate cloud business and its no-drama, spotlight-averse CEO Satya Nadella.

The company will next report results on April 25 after the close. Analysts are looking for earnings of $1 per share on revenuers of $29.9 billion. When the company last reported on Jan. 30, earnings of $1.10 beat estimates by a penny on a 12.3% rise in revenues.


Hot Stocks: Allergan (AGN)

Cold Stocks: Allergan (AGN)

Allergan (NYSE:AGN) shares are cratering, down another 4.2% on Monday to cap a loss of more than 14% from the highs set just two weeks ago. Investors are getting cold feet after the company reported a drop in revenue as competitor Evolus (EOLS) received FDA approval for a Botox alternative to be used to reduce wrinkles and fine lines in patients.

The company will next report results on April 29 before the bell. Analysts are looking for earnings of $3.57 per share on revenues of $3.5 billion.

When the company last reported on Jan. 29, earnings of $4.29 beat estimates by 14 cents on a 5.7% decline in revenues.


Hot Stocks: AbbVie (ABBV)

Cold Stocks: AbbVie (ABBV)

AbbVie (NYSE:ABBV) shares are threatening to fall below their early November low, capping a decline of 17% from the highs reached in early December. A breakdown would set up a fall back to levels not seen since the summer of 2017 and deepen an already painful decline of 35% from its 2018 high. Investors have lost interest amid middling results and bio similar competition for Humira.

The company will next report results on April 26 before the bell. Analysts are looking for earnings of $2.05 per share on revenues of $7.8 billion. When the company last reported on Jan. 25, earnings of $1.90 per share missed estimates by three cents on a 7.3% rise in revenues.


Hot Stocks: DowDuPont (DWDP)

Cold Stocks: DowDuPont (DWDP)

Shares of DowDuPont (NYSE:DWDP) are falling to test critical support from a five-month consolidation range after bonking once again on resistance near the $60-a-share threshold. Results have been pressured by weakening demand from China as well as fears over rising recession risks here at home.

The company will next report results on May 2 before the bell. Analysts are looking for earnings of 90 cents per share on revenues of $20.2 billion.

When the company last reported on Jan. 31, earnings of 88 cents per share beat estimates by a penny on a 0.2% rise in revenues.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.

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