5 ‘Name Brand’ Stocks Getting Marked Down

Big brands like Apple, Kraft and Pepsi aren't holding up against a wave of selling

By Anthony Mirhaydari, InvestorPlace Market Strategist

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Stocks are under pressure again on Friday, pushing the Dow Jones Industrial Average back under its 50-day moving average.

The catalyst for the pullback is fresh weakness in key consumer sales and technology stocks as the first-quarter earnings season rolls on, confirming fears of structural headwinds for many of these iconic companies that the bulls cannot easily shake off.

Here are five feeling the pressure:

Name Brand Stocks: Apple (AAPL)

AAPL shares are down 4% in trading on Friday after analysts lowered their earnings estimates. Shares fell nearly 3% on Thursday following a weak report and forecast from Taiwan Semiconductor (NYSE:TSM) citing softness in the high-end of the smartphone market. Everyone knows this is the iPhone X they are talking about as the so-called “supercycle” has failed to materialize. $999 is just too much to pay for many people.

The company will next report results on May 1 after the close. Analysts are looking for earnings of $2.69 per share on revenues of $61.2 billion. When it last reported on Feb. 1, earnings of $3.89 beat estimates by four cents on a 12.7% rise in revenues.

Name-Brand Stocks: Pepsico (PEP)

Pepsi Co (NYSE:PEP) shares are getting crushed, down nearly 3% on Friday to fall back to levels last seen early last year, in response to weak sales from competitor Procter & Gamble (NYSE:PG) this morning. PG reported weak sales with organic revenues up only 1%.

The company will next report results on April 26 before the bell. Analysts are looking for earnings of 93 cents per share on revenues of $13.4 billion. When the company last reported on Feb. 13, earnings of $1.31 beat estimates by a penny on a 0.1% rise in revenues.

Name-Brand Stocks: Colgate (CL)

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Colgate-Palmolive (NYSE:CL) shares are down 2.7% in trading on Friday, falling back to their February-March lows to threaten a breakdown to early 2017 levels. CL shares, like PEP, are falling in sympathy with PG’s weak results resulting in broad selling across the consumer staples space.

The company will next report results on April 27 before the bell. Analysts are looking for earnings of 73 cents per share on revenues of $4 billion. When the company last reported on Jan. 26, earnings of 75 cents per share matched estimates on a 4.6% rise in revenues.

Name-Brand Stocks: Kimberly Clark (KMB)

Kimberly Clark Corp (NYSE:KMB)
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Kimberly Clark (NYSE:KMB) shares are down 3.2% in trading on Friday, falling all the way back to levels not seen since late 2015 and down 23% from their mid-2017 highs.

KMB is being dragged down as consumers staples overall lose 1.7%, leading the market lower for the second day in a row. Also weighing on sentiment was a Wall Street Journal story this morning on the inability of consumer products companies to raise prices.

The company will next report results on April 23. Analysts are looking for earnings of $1.69 per share on revenues of $4.6 billion. When the company last reported on Jan. 23 earnings of $1.57 beat estimates by three cents on a 0.8% rise in revenues.

Name-Brand Stocks: Kraft Heinz (KHC) 

Kraft Heinz (NYSE:KHC) shares are down 3.4% in trading on Friday, falling out of a two-month consolidation range to return to levels not seen early 2015 representing a decline of roughly 40% from its high in early 2017. Shares were downgraded by Credit Suisse analysts on April 16.

The company will next report results on May 2 after the close. Analysts are looking for earnings of 82 cents per share on revenues of $6.3 billion. When the company last reported on February 16, earnings of 90 cents per share missed estimates by five cents on a 0.3% rise in revenues.

Anthony Mirhaydari is the 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.


Article printed from InvestorPlace Media, https://investorplace.com/2018/04/name-brand-stocks-getting-marked-down/.

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