7 Mid-Cap Stocks to Sell Now

These 7 names may be on the verge of a breakdown, making them stocks to sell before the worst happens

By Anthony Mirhaydari, InvestorPlace Market Strategist

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U.S. equities kicked off the holiday-shortened week on a down note on Tuesday, pressured by lingering fears over weakness in emerging market currencies. The focus has been on Argentina, which raised rates to 60% last week in an embattled attempt to shore up its currency. Intervention by the International Monetary Fund looks likely now.

But contagion looks set to spread, from Brazil to Turkey and beyond.

A mid-day rebound rally is underway as I write this, driven by a vertical extension by key big-cap technology stocks like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL), both of which have crossed over the $1 trillion market capitalization threshold.

But elsewhere in the market, especially in smaller stocks, weakness is persisting. The S&P 400 Mid-Cap Index has been stalled in a sideways pattern for two weeks and looks vulnerable to a test of the August lows.

Here are seven mid-cap stocks that are hard sells right now:

Mid-Cap Stocks to Sell: Parsley Energy (PE)

Shares of Parsley Energy (NYSE:PE) are falling out of a seven-month head-and-shoulders reversal pattern with a violation of neckline support at its 200-day moving average. The pattern traces to a downside target of $21, which would be worth a decline of more than 22% from current levels. This would coincide with a test of the February low.

The company will next report results on Nov. 6 after the close. Analysts are looking for earnings of 44 cents per share on revenues of $495.2 million. When the company last reported on Aug. 7, earnings of 39 cents per share matched estimates on an 118.9% rise in revenues.

Mid-Cap Stocks to Sell: Spirit AeroSystems Holdings (SPR)

Shares of Spirit AeroSystems Holdings (NYSE:SPR) are threatening to fall below the bottom of a five-month consolidation range, setting up a decline back to the lows seen in April which would be worth a decline of more than 9% from current levels. The company is an aerospace industry supplier, making components such as fuselages, engines and wings.

The company will next report results on Oct. 31 before the bell. Analysts are looking for earnings of $1.69 per share on revenues of $1.8 billion per share.

When the company last reported on Aug. 1, earnings of $1.63 per share beat estimates by 11 cents on a 0.6% rise in revenues.

Mid-Cap Stocks to Sell: Hyatt Hotels (H)

Mid-Cap Stocks to Sell: Hyatt Hotels (H)
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Shares of Hyatt Hotels (NYSE:H) have moved back below their 200-day moving average, threatening to move below the lows of its year-long consolidation range near $75. A breakdown from here would risk a reversal of the gains seen late last year, which took shares from a low of around $56 to a high of more than $84, a gain of more than 50%.

The company will next report results on Nov. 1 after the bell. Analysts are looking for earnings of 26 cents per share on revenues of $1.1 billion. When the company last reported on July 31, earnings of 72 cents per share beat estimates by 23 cents per share.

Mid-Cap Stocks to Sell: Kilroy Realty (KRC)

Mid-Cap Stocks to Sell: Kilroy Realty (KRC)
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Kilroy Realty (NYSE:KRC) shares remain mired below their 50-day moving average and are threatening to fall back below critical support near their 200-day moving average. Already, shareholders have suffered a loss of nearly 7% from the highs seen in July. A breakdown here would put the April lows in play, which would be worth another loss of 6% from here.

The company will next report results on Oct. 24 after the close. Analysts are looking for earnings of 88 cents per share on revenues of $178.4 million.

When the company last reported on July 25, earnings of 86 cents per share missed estimates by four cents on a 3.6% rise in revenues.

Mid-Cap Stocks to Sell: Douglas Emmett (DEI)

Douglas Emmett (NYSE:DEI) shares have been unable to retake their 50-day moving average and and is at risk of falling below their 200-day moving average which threatens the post-February uptrend that saw shares rise nearly 20%. The company, an office REIT, is at risk along with the rest of the yield-sensitive real estate sector as long-term Treasury bonds weaken here, pushing up yields.

The company will next report results on Nov. 6 after the close. Analysts are looking for earnings of 51 cents per share on revenues of $222 million. When the company last reported on July 31, earnings of 51 cents per share beat estimates by a penny on a 10% rise in revenues.

Mid-Cap Stocks to Sell: Antero Resources (AR)

Mid-Cap Stocks to Sell: Antero Resources (AR)
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Shares of Antero Resources (NYSE:AR), an independent oil and gas company, are reversing sharply lower after suffering a decline of more than 22% from the highs set in early July. Shares have been stuck in a sideways consolidation range since the summer of 2017, unable to benefit from the recent rebound in energy prices — which is now at risk of fading with crude oil prices moving back below the $70-a-barrel threshold on Tuesday.

The company will next report results on Oct. 31 after the close. Analysts are looking for earnings of 25 cents per share on revenues of $1.1 billion.

When the company last reported on Aug. 1, earnings of two cents per share missed estimates by 15 cents on a 25.2% rise in revenues.

Mid-Cap Stocks to Sell: Hexel (HXL)

Mid-Cap Stocks to Sell: Hexel (HXL)
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Hexel (NYSE:HXL) shares are moving below their 200-day moving average for the first time since the summer of 2017 threatening to end an uptrend that started in late 2016. The company, a maker of composite materials used in aerospace and industrial markets, was hit with a sell rating by UBS analysts when they initiated coverage on Aug. 16.

The company will next report results on Oct. 17 after the close. Analysts are looking for earnings of 78 cents per share on revenues of $546.4 million. When the company last reported on July 23, earnings of 75 cents per share matched estimates on an 11.4% 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.


Article printed from InvestorPlace Media, https://investorplace.com/2018/09/7-mid-cap-stocks-to-sell-now/.

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