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10 Meltdown Stocks to Sell Before It’s Too Late

stocks to sell - 10 Meltdown Stocks to Sell Before It’s Too Late

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U.S. equities are under severe pressure again on Wednesday as tepid earnings fail to encourage aggressive dip-buying demand. Weak U.S. housing data added to the worry, with new home sales missing forecasts by a wide margin. Despite this, Federal Reserve officials continue to make hawkish noises about sticking to their aggressive rate hike pace.

Amid the risk-off environment investors are rotating out of more cyclical names (such as technology and chipmakers) and into more defensive areas. The result is some nasty looking pullbacks in a number of popular stocks. Here are 10 large-cap stocks to sell as they suffer significant meltdowns.

Molson Coors Brewing (TAP)

stocks to sell: Molson Coors Brewing (TAP)

Shares of Molson Coors Brewing (NYSE:TAP) are extending a multi-month downtrend and are threatening to close below the lows set back in May. This caps a selloff that started back in late 2016 that has already seen prices lose 44% of their value. The weakness comes despite an initiation of coverage with a buy rating from Standpoint Research.

The company will next report results on Oct. 31 before the bell. Analysts are looking for earnings of $1.58 of on revenues of $2.9 billion. When the company last reported on Aug. 1, earnings of $1.88 per share beat estimates by 5 cents on a 0.2% decline in revenues.

Gap (GPS)

stocks to sell: Gap (GPS)Gap (NYSE:GPS) stock has fallen below its 200-day moving average and is threatening a break below its late 2017 reaction low — setting up a decline down to the summer 2017 consolidation level near $21. Such a decline would be worth a 20% fall from here. The stock was recently downgraded by JPMorgan analysts.

The company will next report results on Nov. 20 after the close. Analysts are looking for earnings of 68 cents per share on revenues of $4 billion. When the company last reported on Aug. 23, earnings of 76 cents per share beat estimates by 4 cents on a 7.5% rise in revenues.

Facebook (FB)

stocks to sell: Facebook (FB)Facebook (NASDAQ:FB) stock is already down more than 30% from the highs reached in July as worries about tepid user growth and an ongoing focus on privacy concerns weigh on sentiment. If current levels associated with the mid-2017 consolidation range don’t hold, then the next stop will be the late 2016 lows near $115, which would be worth a further 23% loss from here.

The company will next report results on Oct. 30 after the close. Analysts are looking for earnings of $1.5 per share on revenues of $14.3 billion. When the company last reported on July 25, earnings of $1.74 per share beat estimates by 4 cents on a 41.9% rise in revenues.

Bank of America (BAC)

stocks to sell: Bank of America (BAC)Bank of America (NYSE:BAC) stock is melting down, collapsing away from prior support near its 200-day moving average and its early July low near $27.50. Watch for a decline to the summer 2017 range near $23, which would be worth another 17% decline from here. Despite the reporting of solid earnings earlier in the month, shares have been hit along with the broader bank sector on concerns that higher interest rates will dampen loan demand and credit performance.

The company will next report results on Jan. 14 before the bell. Analysts are looking for earnings of 64 cents per share on revenues of $22.4 billion. When the company last reported on Oct. 15, earnings of 66 cents beat estimates by 4 cents on a 3.2% rise in revenues.

AT&T (T)

stocks to sell: AT&T (T)AT&T (NYSE:T) shares are dropping hard below their two-month trading range, setting up a test of the July low and falling further away from its 200-day moving average. Already down more than 20% from its early 2017 high, a breakdown here would set up a fall to the late 2015 range near $28, which would be worth another 10% downside from here.

The company reported results before the bell this morning, with earnings of 90 cents per share missing estimates by 5 cents on a 15.3% rise in revenues. But investors were disappointed by losses in entertainment subscriptions. When the company last reported on July 24, earnings of 91 cents per share beat estimates by 2 cents on a 2.1% decline in revenues.

Wells Fargo (WFC)

stocks to sell: Wells Fargo (WFC)Wells Fargo (NYSE:WFC) shares are dropping below their 200-day moving average for the first time since 2016, capping a decline of more than 22% from the highs seen back in January. If the April lows don’t hold, watch for a fall back to levels seen in the summer of 2017 for a further loss of roughly 6% from here.

The company will next report results on Jan. 11 before the bell. Analysts are looking for earnings of $1.19 per share on revenues of $21.3 billion. When the company last reported on Oct. 12, earnings of $1.13 per share beat estimates by 4 cents on a 0.4% rise in revenues.

Home Depot (HD)

stocks to sell: Home Depot (HD)Home Depot (NYSE:HD) shares are struggling to stabilize after collapsing from their early September high, down more than 16%, to return to levels last seen in April. Shares have been hit by recent indications of slowing in the housing market. Morgan Stanley analysts also lowered their price target to $200 from $225.

The company will next report results on Nov. 13. Analysts are looking for earnings of $2.3 per share on revenues of $26.3 billion. When the company last reported on Aug. 14, earnings of $3.05 beat estimates by 20 cents on a 8.4% rise in revenues.

DowDuPont (DWDP)

stocks to sell: DowDuPont (DWDP)DowDuPont (NYSE:DWDP) shares are in full meltdown mode, down nearly 25% from the highs seen in late August and down 30% from the highs seen in January. Analysts at Stephens downgraded the stock last week to “equal weight” as sentiment has been battered by the announcement of a goodwill writedown related to its agriculture business.

The company will next report results on Nov. 1 before the bell. Analysts are looking for earnings of 71 cents per share on revenues of $20.3 billion. When the company last reported on Aug. 2, earnings of $1.37 beat estimates by 8 cents on a 75.3% rise in revenues.

Nvidia (NVDA)

stocks to sell: Nvidia (NVDA)Nvidia (NASDAQ:NVDA) stock is in the midst of a waterfall collapse from the high near $290 set earlier this month. Already down nearly 30%, shares are suffering their first significant pullback since an epic AI/autonomous driving/cryptocurrency uptrend started in 2015. The selloff comes despite the addition of the name to Goldman’s conviction buy list on Oct. 18.

The company will next report results on Nov. 15 after the close. Analysts are looking for earnings of $1.73 per share on revenues of $3.3 billion. When the company last reported on Aug. 16, earnings of $1.94 beat estimates by 10 cents on a 40% rise in revenues.

AbbVie (ABBV)

stocks to sell: AbbVie (ABBV)AbbVie (NYSE:ABBV) shares are breaking down out of a long consolidation range going back to February, capping an overall decline of roughly 35% from the highs set in January. This after the bulls bonked on resistance from the 200-day moving average in July and again in August. Analysts at SunTrust lowered their price estimate on the stock on Oct. 22 on worries over competition from generics in Europe.

The company will next report results on Nov. 2 before the bell. Analysts are looking for earnings of $2 per share on revenues of $8.3 billion. When the company last reported on July 27 earnings of $2 beat estimates by 3 cents on a 19.2% rise in revenues.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/10/10-meltdown-stocks-to-sell-before-its-too-late/.

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