U.S. equities are on the slide again on Wednesday as the U.S.-China trade standoff continues to devolve into an outright trade war. President Trump is looking at expanding the number of Chinese firms that will lose access to American technology — widening the crackdown on Huawei.
China, in response, has begun to call for a boycott of American products and services, including Apple (NASDAQ:AAPL) iPhones. The fear now is that the tit for tat will increasingly threaten global supply chains and undermine efforts, on the part of Apple and other American companies, to focus on Chinese consumers as a growth market.
Outside of big tech stocks directly impacted by this, airline stocks are an industry group feeling the pressure on worries over a drag on both business and leisure travel as pan-Pacific relations worsen. Here are four airline stocks to sell.
Alaska Air Group (ALK)
Shares of Alaska Air Group (NYSE:ALK) have been turned away from double-top resistance at its 200-day moving average, setting up a test of its 50-day average and a likely return to the March lows. Such a move would be worth a loss of 10% from here. Despite the acquisition of Virgin America’s assets, the stock has been stuck in the same trading range that it first reached back in 2015.
The company will next report results on July 25 after the close. Analysts are looking for earnings of $1.84 per share on revenues of $2.2 billion. When the company last reported on April 25, earnings of 17 cents per share beat estimates by 2 cents on a 2.4% rise in revenues.
Delta Airlines (DAL)
Delta Airlines (NYSE:DAL) shares are cutting back below their 50-day moving average, turning away from prior highs near the $60-a-share level, setting up a likely violation of its 200-day moving average and a return to prior lows set back in January. Shares were recently downgraded by analysts at Morgan Stanley.
The company will next report results on July 10 before the bell. Analysts are looking for earnings of $2.16 per share on revenues of $12.2 billion. When the company last reported on April 10, earnings of 96 cents per share beat estimates by 5 cents on a 5.1% rise in revenues.
American Airlines (AAL)
American Airlines (NASDAQ:AAL) is among the weakest names on this list, threatening to break down out of an eight-month pennant formation that’s formed after multiple unsuccessful attempts to push above the 200-day moving average. The stock is already down some 50% from the highs set in early 2018 and looks ready to fall back to the lows set in the summer of 2016 near $24, which would be worth a loss of roughly 20% from here.
The company will next report results on July 26 before the bell. Analysts are looking for earnings of $1.72 per share on revenues of $12 billion. When the company last reported on April 26, earnings of 52 cents per share beat estimates by 2 cents on a 1.8% rise in revenues.
United Continental (UAL)
Shares of United Continental (NASDAQ:UAL) have fallen back below their 200-day moving average, testing a critical support line that can be traced back to the lows set in the summer of 2016. A breakdown would likely put the $60-a-share level in play, which would be worth a loss of nearly 30% from here.
The company will next report results on July 16 after the close. Analysts are looking for earnings of $4.09 per share on revenues of $11.4 billion. When the company last reported on April 16, earnings of $1.15 beat estimates by 19 cents on a 6.2% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
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