U.S. equities are taking a breather on Tuesday as President Trump heads to Hanoi for a summit with North Korean leader Kim Jung-un. Also weighing on sentiment are reports Trump’s former attorney Michael Cohen will testify before Congress about alleged crimes committed by Trump during his time in the White House.
With Democrats in the House itching for more dirt, the risk is that acrimony and allegation will eclipse any chance of stimulus measures such as infrastructure spending becoming law.
At the same time, stocks are looking a bit overbought here after nine weeks of strong gains. A number of popular issues are rolling over amid bouts of profit taking. Here are four large-cap stocks to watch:
Kraft Heinz (KHC)
Shares of Kraft Heinz (NASDAQ:KHC) have been slammed lower in recent days — down nearly one-third from recent highs — after missing earnings expectations, suffering a spate of analyst downgrades, receiving notice from the SEC that its accounting practices were under investigation and attracting the ire of Warren Buffett, who admitted he overpaid for KHC stock.
The company will next report results on May 23 after the close. Analysts are looking for earnings of 72 cents per share on revenues of $6.2 billion. When the company last reported on Feb. 21, earnings of 84 cents per share missed estimates by 10 cents on a 0.7% rise in revenues.
Coca-Cola (KO)
Shares of Coca-Cola (NYSE:KO), another Warren Buffett favorite, have been slammed below their 200-day moving average for a total decline of 10% from the double-top high near $50. That returns prices to the middle of a three-year consolidation range. Analysts at Citigroup recently lowered their target and downgraded their rating on KO stock.
The company will next report results on May 16 before the bell. Analysts are looking for earnings of 47 cents per share on revenues of $7.9 billion. When the company last reported on Feb. 14, earnings of 43 cents per share matched expectations on a 5.5% drop in revenues.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) shares are being hit with more drama from CEO Elon Musk, who has been taken to task by the SEC for tweets this week touting a very ambitious full-year production target. Elon subsequently tried to walk back his enthusiasm, but regulators are requesting a judge hold him in contempt anyway.
TSLA stock is drifting lower in response, heading toward another retest of the 200-week moving average down about 10% from current levels. The company will next report results on May 1 after the close. Analysts are looking for a loss of 30 cents per share on revenues of $7.3 billion. When the company last reported on Jan. 30, earnings of $1.93 missed estimates by 9 cents on a 119.8% rise in revenues.
Campbell Soup (CPB)
After a marketing push to tout that soup is a meal was unsuccessful, shares of Campbell Soup (NYSE:CPB) are on the slide again, heading for a retest of recent lows near the $32-a-share threshold. CPB stock is down by roughly one-half from its late 2016 highs as management struggles to turn its business around.
The company will next report results on Feb. 27 before the bell. Analysts are looking for earnings of 70 cents per share on revenues of $2.7 billion. When the company last reported on Nov. 20, earnings of 79 cents per share beat estimates by 8 cents on a 24.7% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
