Stocks are rallying strongly again on Monday thanks to the easing of political tensions in Europe and a really solid non-farm payrolls report here at home on Friday which featured a drop in the unemployment rate to 3.8% — the lowest since April 2000. Payrolls expanded by 223,000 vs. the 190,000 gain expected.
Hopes for the upcoming summit with North Korea on June 12 are lifting spirits as well.
As a result, the large-cap indices look ready to push above their May highs and take a run at levels last seen in March. But it’s not all perfection: Seasonality and breadth are headwinds. Relatively few stocks are participating to the upside, with fewer stocks rallying today than on Friday. The Traders Almanac folks noting that June is the worst month of the year for the major averages during mid-term election years, with an average decline of 1.9% for large-cap issues.
With this mixed outlook for investors, here is a list of “hot or not” stocks with which to plan your next trade:
New Highs to Chase: Apple (AAPL)
Apple Inc. (NASDAQ:AAPL) shares have pushed up and out of a two-month consolidation near the $190-a-share level as hype builds for another iPhone refresh cycle later this year, with new full-face screen models due that go up and down the price point spectrum. After some share price stalling earlier this year and late last year on worries over the iPhone X’s price point, this seems to be directly addressing investor concerns.
The company will next report results on July 31 after the close. Analysts are looking for earnings of $2.18 per share on revenues of $52.3 billion. When the company last reported on May 1, earnings of $2.73 beat estimates by five cents on a 15.6% rise in revenues.
New Highs to Chase: Amazon (AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) is pushing to a new record high, eclipsing its March and May highs, amid ongoing focus on the company’s dominant effort in online retail, which is growing more and more profitable. The earnings kick from Amazon Web Services doesn’t appear to be going anywhere either, despite competitive pressures.
The company will next report results on July 26 after the close. Analysts are looking for earnings of $2.43 per share on revenues of $53.4 billion. When the company last reported on April 26, earnings of $3.27 per share beat estimates by $2.02 on revenue growth of 42.9%.
New Highs to Chase: Microsoft (MSFT)
Microsoft Corporation (NASDAQ:MSFT) shares are going vertical, pushing up and over the $100-per-share threshold for the first time. The company is benefiting from excitement around its acquisition of software development platform GitHub for $7.5 billion in stock. Analysts at BMO Capital Markets note the deal makes strategic sense, as it allows the company to capture more developer mind share and encourage more development within the Azure ecosystem.
The company will next report results on July 19 after the close. The company is expected to report earnings of $1.08 per share on revenues of $29.2 billion. When the company last reported on April 26, earnings of 95 cents per share beat estimates by 10 cents on a 15.5% rise in revenues.
New Highs to Chase: Netflix (NFLX)
Netflix, Inc. (NASDAQ:NFLX) shares are pushing up and over their March and April highs to hit new records, encouraged by an update by MKM Partners (raising price target to $390) and an appearance by RBC’s Mark Mahaney on CNBC discussing his positive outlook.
The company will next report results on July 16 after the close. Analysts are looking for earnings of 81 cents per share on revenues of $3.9 billion.
When the company last reported on April 16, earnings of 64 cents per share beat estimates by a penny on a 40.3% rise in revenues.
New Highs to Chase: Nvidia (NVDA)
Nvidia Corporation (NASDAQ:NVDA) shares are popping up and over the $260-a-share level — clearing resistance going back to January — as buyers pile into what has been one of the most consistent tech stocks in recent years thanks to its exposure to everything from cryptocurrency to AI and self driving vehicles.
The company will next report results on Aug. 9 after the close. Analysts are looking for earnings of $1.67 per share on revenues of $3.1 billion. When the company last reported on May 10, earnings of $2.05 per share beat estimates by 39 cents on a 65.6% rise in revenues.
New Lows to Sell: Philip Morris (PM)
Cigarette maker Phillip Morris International Inc. (NYSE:PM) is watching in horror as its shares are snuffed out, gapping down to levels last seen in early 2016 and falling below the lows seen in December of that year. That returns prices to the five-year consolidation range suffered between 2012 and 2016. The decline came in response to weaker-than-expected quarterly revenues.
The company will next report results on July 19 before the bell. Analysts are looking for earnings of $1.25 per share on revenues of $7.7 billion.
When the company last reported on April 19, earnings of $1 per share beat estimates by 12 cents on a 13.7% rise in revenues.
New Lows to Sell: Campbell Soup (CPB)
Campbell Soup Company (NYSE:CPB) shares have gapped down, returning to lows not seen since early 2013, representing a fall of nearly one-half from the highs set in the summer of 2016. Consumer staples in general have been a disaster zone lately amid price pressure from upmarket store brands as retailers (including Walmart Inc (NYSE:WMT) and Amazon) push onto their turf. Margins are also being pressured by rising food costs.
The company will next report results on Aug. 30 before the bell. Analysts are looking for earnings of 25 cents per share on revenues of $2.3 billion. When the company last reported on May 18, earnings of 70 cents per share beat estimates by 10 cents on a 14.7% rise in revenues.
New Lows to Sell: Avon Products (AVP)
Avon Products, Inc. (NYSE:AVP) shares have dropped down below support from their November lows, falling below the lows seen in late 2015 and early 2016, capping a wrenching 95%-plus fall from its late 2008 high. The company’s business model of direct sales and representatives is under pressure by eroded brand cache and intense competition.
The company will next report results on Aug. 2 before the bell. Analysts are looking for a breakeven result on revenues of $1.4 billion.
When the company last reported on May 3, earnings of two cents per share beat estimates by four cents on a 0.9% growth in revenue.
New Lows to Sell: GNC Holdings (GNC)
GNC Holdings Inc (NYSE:GNC) shares are testing the lows set in early January, risking a breakdown and capping a decline from the late 2013. This despite being resumed with a neutral rating by Morgan Stanley analysts.
The company will next report results on July 26 before the bell. Analysts are looking for earnings of 12 cents per share on revenues of $607.7 million. When the company last reported on April 26, earnings of 24 cents per share missed estimates by two cents on a 7.2% drop in revenues.
New Lows to Sell: Flotek Industries (FTK)
Flotek Industries Inc (NYSE:FTK) shares have been slammed, losing more than 50% since April, despite a rally in crude oil prices. This after investors were spooked by a massive revenue pre-report guidance cut.
The company will next report results on Aug. 7 after the close. Analysts are looking for a loss of seven cents per share on revenues of $63.5 million.
When the company last reported on May 9, earnings of a penny per share beat estimates by five cents on a 24.3% decline 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.
