U.S. equities are blasting higher on Monday as Hurricane Irma wasn’t the catastrophe the cable news channels hyped it up to be (while still deadly, don’t get me wrong) and fears over a nuclear exchange with North Korea fade.
Also dissipating are worries over possible Federal Reserve policy tightening later this month and the fact that “globalist” White House advisor Gary Cohn no longer appears to be in the running for Federal Reserve chairman.
As a result, the major averages are pushing higher to retest their August highs. Here are seven stocks and exchange-traded funds leading the charge after suffering a spill in August.
GoPro Inc (NASDAQ:GPRO) shares are up more than 9% in trading on Monday, extending further off of its 200-day moving average and up more than 40% from its early August low pushing to levels not seen since last October.
The company is in turnaround mode after its Karma drone debutted with turbulent battery issues. Hype is growing for the upcoming Hero 6 launch later this year, with Oppenheimer analysts noting end-user traction on the push for its cameras as an extension of phone cameras (via app control, etc.).
The company will next report results on Nov. 2 after the close. Analysts are looking for a loss of a penny a share on revenues of $313 million. When the company previously reported on Aug. 3, a loss of nine cents per share beat estimates by 16 cents on a 34.3% rise in revenues.
iShares Russell 2000 (IWM)
The iShares Russell 2000 Index (ETF) (NYSEARCA:IWM) is gapping higher to hit early August levels, continuing a run of relative strength versus the S&P 500 that started on Aug. 22.
Still, smaller stocks remain within the confines of a relative strength downtrend since December as investors have since focused on a narrow group of large-cap tech stocks.
That’s kept small stocks rangebound in a ten-month consolidation range.
Watch for a surge of upward momentum should this broad market uptrend persists, as smaller stocks are better positioned to rally on any perceived acceleration in GDP growth and corporate earnings growth heading into 2018.
Intel Corporation (NASDAQ:INTC) shares are rising off of support at its 50-day moving average and have rebounded more than 8% from its early July low.
INTC stock has ambled sideways since last September, mostly due to a combination of PC market worries and uncertainty with emerging technologies, such as autonomous transportation. A move above the $37-a-share level would represent a massive breakout, attracting follow-on momentum buying.
The company will next report results on Oct. 26 after the close. Analysts are looking for earnings of 80 cents per share on revenues of $15.7 billion. When the company last reported results on Oct. 26, earnings of 72 cents per share beat estimates by four cents on a 9.1% rise in revenues.
Fitbit Inc (NYSE:FIT) has been in turnaround mode, struggling to find its footing amid the onslaught from larger competitors like Apple in the wearables space.
The launch of new fitness-minded models is helping some optimism return and could set the stage for a breakout up and out of a year-long morass near the $6-a-share level. A jump up and over the 200-day moving average in recent days is the first positive sign something is afoot.
The company will next report results on Nov. 1 after the close. Analysts are looking for a loss of four cents per share on revenues of $391.9 million. When the company last reported on Aug. 2, a loss of eight cents per share missed estimates by 15 cents on a near-40% drop in revenues.
Kohl’s Corporation (NYSE:KSS) shares have climbed back above their 200-day moving average and are looking ready to break up and out of a year-long consolidation range as the smoke clears a little from the retail sector battered by tepid customer traffic and the intense price pressure from Amazon.
Shares are down more than 24% from their recent high. Recent chatter suggests AMZN may even make a bid for the company, which is rolling out an Amazon “Smart Home” experience in a number of stores. If you can’t beat them, join them.
The company will next report results on Nov. 9 before the bell. Analysts are looking for earnings of 72 cents per share on revenues of $4.3 billion. When the company last reported on Aug. 10, earnings of $1.24 per share beat estimates by five cents on a 0.9% drop in revenue from the year-ago period.
Abercrombie & Fitch (ANF)
Abercrombie & Fitch Co. (NYSE:ANF) has been in turnaround mode for years after its preppy-chic apparel with a premium price tag fell out of favor with Millennials looking to distance themselves from the excesses of the late Clinton Administration.
The share price decline has been catastrophic, down nearly 90% from a high in 2011 to the low set earlier this summer. Since then, shares have rallied nearly 60% thanks in part to an RBC analyst upgrade in late August as brand reimaging efforts gain traction.
The company will next report results on November 16 before the bell. Analysts are looking for earnings of 22 cents per share on revenues of $820.6 billion.
When it last reported on Aug. 24, a loss of 16 cents per share beat estimates by 17 cents on a 0.5% decline in year-over-year revenue.
Chevron Corporation (NYSE:CVX) shares, along with much of the energy sector, is continuing to push off of summertime lows rising away from its 50-day and 200-day moving averages.
Prices are pushing to levels not seen since January, up some 10% from their recent lows. Shares are enjoying a lift on the restart of refinery output following Hurricane Harvey and chatter that OPEC could extend its oil production freeze agreement.
The company will next report results on Oct. 27 before the bell. Analysts are looking for earnings of 90 cents per share on revenues of $34.5 billion. When the company last reported on July 28, earnings of 77 cents missed estimates by 10 cents on a 17.8% rise in revenues.