U.S. equities are taking a bit of a breather on Friday from their recent upward trajectory, with the Dow Jones Industrial Average hitting a bit of resistance near the 24,000 level.
The Russell 2000, for its part, is pausing just below its 50-day moving average. The bulls have earned a rest after an impressive surge out of the Christmas Eve low that has seen large-caps gain more than 10% for the best performance since the bear market low in 2009.
Some stocks are benefiting more than others from the value hunting that’s going on, with the bottom feeders preferring to go in big on really beaten-down names. All the better to maximize the bounce off of the lows that capped what was the worst intra-month decline in December since the Great Depression.
Here are five turnaround stocks to buy:
General Motors (GM)
Shares of General Motors (NYSE:GM) are breaking up and over their 200-day moving average in a confident way, looking ready to leave behind a level that has plagued shareholders over the past year. Prices are responding to the issuance of some solid forward guidance before the open, with management looking for fiscal 2019 earnings of between $6.50 and $7 per share vs. the $5.84 Street estimate.
The company will next report results on Feb. 6 before the bell. Analysts are looking for earnings of $1.19 per share on revenues of $35.9 billion. When the company last reported on Oct. 31 earnings of $1.87 per share beat estimates by 62 cents on a 6.4% rise in revenues.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) shares are pushing above their 200-day moving average for the first time since October, capping a rise of nearly 50% from the lows seen in late December. An impressive performance by any standard. Shares recently enjoyed an upgrade from analysts at UBS and Raymond James, helping fuel the rise.
The company will next report results on Jan. 17 after the close. Analysts are looking for earnings of 25 cents per share on revenues of $4.2 billion. When the company last reported on Oct. 16, earnings of 89 cents per share beat estimates by 21 cents on a 34% rise in revenues.
Boeing (BA)
Despite some turbulence in airline stocks like Delta (NYSE:DAL), Boeing (NYSE:BA) shares are climbing back to altitude rising above their 200-day moving average to mark a 20%+ rise off of their late December low. A strong order backlog and steady demand out of Asia makes the stock a solid pick for playing the market recovery. Analysts at Morgan Stanley recently upgraded shares to overweight.
The company will next report results on Jan. 30 before the bell. Analysts are looking for earnings of $4.5 per share on revenues of $27 billion. When the company last reported on Oct. 24, earnings of $3.58 beat estimates by 11 cents on a 3.8% rise in revenues.
Fitbit (FIT)
Fitbit (NYSE:FIT) shares have scrambled back over their 200-day moving average, making another run at breaking out of a long consolidation range going back to the end of 2016. The company has been left behind as its early lead in fitness wearables was gobbled up by Apple’s (NASDAQ:AAPL) push into the space with multiple generations of its Apple Watch. But there remains a market for cheaper, simpler devices and that’s where Fitbit is shining.
The company will next report results on Jan. 30 after the close. The company last reported on Oct. 31, with earnings of 4 cents per share beating estimates by 5 cents on a 0.3% rise in revenues.
Gamestop (GME)
Gamestop (NYSE:GME) shares have surged roughly 40% from their late December low to challenge the double-top highs set back in August and September. Shares have been battered lower in recent years amid the push to digitally deliver video games rather than in the physical format. But hope is building for an ongoing strategic review and possible buyout interest from the private equity sector.
The company will next report results on Feb. 28 after the close. Analysts are looking for earnings of $1.62 per share on revenues of $3.2 billion. When the company last reported on Nov. 29, earnings of 59 cents per share beat estimates by 3 cents on a 4.8% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
