5 Most Vulnerable Stocks You Probably Own
U.S. large-cap stocks are back in the red in mid-day trading on Wednesday, with the Dow Jones Industrial Average suffering a 350-point decline from its intra-day high amid ongoing trade fears, worries about high gas prices translating into higher inflation and concern the Federal Reserve could quicken its rate hike pace.
While the market bulls have been enamored with the persistent performance of large-cap technology stocks, the rest of the market has been limping lower. More and more mega-cap issues are getting caught in the downdraft.
Here are 5 widely-held stocks that are looking vulnerable here:
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5 Vulnerable Stocks You Probably Own: Boeing (BA)
After stalling again near the late February high around $370, Boeing (NYSE:BA) shares have dropped back below their 50-day moving average in a return to the lows last seen in early May. The company is on the sharp, pointy end of possible trade blowbacks from Beijing against the Trump Administration, as airliners are probably the single most important physical export out of the United States.
The company will next report results on July 25 before the bell. Analysts are looking for earnings of $3.45 per share on revenues of $23.8 billion. When the company last reported on April 25, earnings of $3.64 beat estimates by $1.05 on a 6.5% rise in revenues.
5 Vulnerable Stocks You Probably Own: Caterpillar (CAT)
Caterpillar Inc (NYSE:CAT) shares are deepening their decline under the 200-day moving average, falling below the support from the April-May lows to return to levels last seen in early December. The company will be impacted by the $34 billion in Section 301 tariffs against China concerning agricultural machinery.
The company will next report results on July 30 before the bell. Analysts are looking for earnings of $2.72 per share on revenues of $13.99 billion. When the company last reported on April 24, earnings of $2.82 beat estimates by 72 cents on a 30.9% rise in revenue.
5 Vulnerable Stocks You Probably Own: Goldman Sachs (GS)
Financial stocks like Goldman Sachs Group (NYSE:GS)have been underperforming for months as investors have focused almost exclusively on the action in big-cap technology stocks. GS is down roughly 20% from its March high, in bear market territory outright. Although not directly impacted by the U.S. v. China trade tensions, the resulting weakness in emerging market equities will no doubt weigh on earnings growth.
The company will next report results on July 17 before the bell. Analysts are looking for earnings of $4.58 per share on revenues of $8.6 billion. When the company last reported on April 17, earnings of $6.95 beat estimates by $1.38 on a 25% rise in revenue
5 Vulnerable Stocks You Probably Own: McDonalds (MCD)
When President Trump met with North Korean leader Kim Jung Un in Singapore, he joked that among the advantages of buddying up to America was the possibility of McDonald’s (NYSE:MCD) restaurants being built in Pyongyang. The company could use a lift after prior initiatives around breakfast and lower prices have stalled, leaving management looking for new ideas. Shares have dropped out of their post-February uptrend channel, setting the stage for a test of the March lows.
The company will next report results on July 24 before the bell. Analysts are looking for earnings of $1.93 per share on revenues of $5.4 billion. When the company last reported on April 30, earnings of $1.79 per share beat estimates by 12 cents on a 9.5% decline in revenues.
5 Vulnerable Stocks You Probably Own: Bank of America (BAC)
Bank of America (NYSE:BAC) shares have dropped below their 200-day moving average, continuing a multi-month decline from the highs set in March. Not even easy passage of the Fed’s latest stress tests, positive coverage in Barron’s, and the net interest margin lift from higher long-term interest rates is generating investor interest. Instead, the worry is about the risks to credit performance as the economic cycle enters its final stage.
The company will next report results on July 16 before the bell. Analysts are looking for earnings of 62 cents per share on revenues of $23.1 billion. When the company last reported on April 16, earnings of 62 cents per share beat estimates by three cents on a 4.1% rise in revenues.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
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