Here are some stocks for you to consider this week courtesy of the SparkFin app.
Nike (NKE) reports it’s 3rd quarter results on Tuesday after the closing bell. The iconic company is trading just 5% below its 52-week highs — which are also all-time highs. They are expected to report increased sales growth and a good reaction to earnings could send their stock price into record territory.
Related Lists: Hitting New 52-Week Highs, Iconic Brands
Related Stocks: Lululemon (LULU), Under Armour (UA)
Gold is up almost 20% since the start of the year on concerns in China and plunging global interest rates. When interest rates go up, gold generally goes down, and with the Fed holding rates steady last week, the recent rally is expected to continue. The question is, will it rest this week or continue its run? The SPDR Gold Trust (GLD) is the ETF that tracks gold.
Related Lists: Precious Metals & Miners, Resting Below 52-Week Highs
Related Stocks: Harmony Gold Mining (HMY), Barrick Gold (ABX), Newmont (NEM)
The recent rebound in housing stocks will be put to the test when builder KB Home (KBH) report earnings on Wednesday. Technically, the stock looks great. Recent price action suggests the stock has bottomed and currently it is in a tight flag pattern — one of the most powerful technical patterns. In addition, its just breaking above its 200-day moving average, which often signals a trend change from bearish to bullish.
Related Lists: Tight Flag Pattern, Have These Stocks Bottomed, Homebuilders
Related Stocks: Lennar (LEN), Toll Brothers (TOL), D.R. Horton (DHI), Pulte (PHM)
No sector got hurt worse during the market plunge in January than the banking sector. Yet many of the component stocks look as if they have found a bottom. Bank of America (BAC) bounced off a 3-year low in February and has been consolidating sideways for a couple weeks. This week could see the beginning of a second leg in its recent upward momentum.
Related Lists: Have These Stocks Bottomed, Money Flow: Banks & Financials
Related Stocks: Wells Fargo (WFC), JPMorgan Chase (JPM), Citibank (C)
An upgrade of the gaming environment in Macao last week sent shares of companies who operate properties there higher. Las Vegas Sand (LVS) owns numerous casinos in Macao, Singapore, and China proper, and their stock was already in bullish mode, having crossed above the 200-day moving average in late February. After a slight rest, a test of the 52-week highs could be in play.
Related Lists: Casinos & Gambling, Crossing 200-Day Moving Average
Related Stocks: Wynn (WYNN), Ceasar Ent (CZR), MGM Resorts (MGM)
It seems as if each week brings even worse news for Chipotle Mexican Grill (CMG). On the heels of their well publicized e.coli outbreak, the stock was downgraded last week by Jefferies & Co. Technically the stock looks like it’s in trouble, having giving back all the gains from its bounce in early January, and heading towards 52-week lows.
Related Lists: Fast Casual Restaurants, Hitting New 52-Week Lows
Related Stocks: McDonald’s (MCD), Shake Shack (SHAK), Panera (PNRA)
Video game publishers have been on fire during the last year, but retailer GameStop(GME) hasn’t benefited, with shares falling 23% in 2015. They announce 4th quarter earnings on Thursday, which include holiday sales, traditionally their strongest time of the year. Technically, the stock is 20% off its mid-January low and is in a tight flag pattern. Strong earnings could see price break to the upside of that flag.
Related Lists: Gaming Stocks, Tight Flag Pattern, Have These Stocks Bottomed
Related Stocks: Activision Blizzard (ATVI), Electronic Arts (EA)
Abercrombie & Fitch (ANF) recently crushed earnings, sending a stock that was already in a long-term uptrend, to new 52-week highs. Now it is consolidating right below those highs in a tight flag pattern. There’s no reason to think that the momentum in this stock will slow in the near term.
Related Lists: Long-Term Uptrend, Resting Below 52-Week Highs
Related Stocks: Gap (GPS), American Eagle Outfitters (AEO)
FedEx (FDX) is an example of a stock where everything is working from a technical basis, but not from a fundamental one. The stock bottomed in February and formed a tight flag pattern in March, which it rocketed out of — crossing above the 200-day moving average in the process — after announcing great earnings last week. However, the stock was also downgraded by analysts. This week will show if technicals or fundamentals will prevail.
Related Lists: Crossing 200-Day Moving Average, Have These Stocks Bottomed
Related Stocks: United Parcel Service (UPS)
Crude oil is in an odd spot right now, as illustrated by the United States Oil Fund(USO), the ETF that tracks black gold. The ETF is technically still in a long-term downtrend, but recently hit 3-month highs, and shows signs of possibly having a bottom in place. This week should give more clarity in the conflict between bullish and bearish forces.
Related Lists: The Oil & Gas Patch, In Long-Term Downtrend
Related Stocks: Exxon Mobile (XOM), Chevron (CVX), Haliburton (HAL)
Have a great week in the market.
-The SparkFin Team
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