U.S. equities are fighting back from deep losses near the open on Thursday, after a fresh easing action by the European Central Bank was met with selling after officials warned of risks to the economic outlook. The stimulus package — another round of term bank loans — was a bit underwhelming.
The selloff comes as the major averages battled with significant overhead resistance levels, the 26,000 threshold on the Dow Jones Industrial Average and the 2,800 level on the S&P 500. Unless President Trump can deliver a trade agreement with Beijing soon, the profit taking looks set to continue.
Transportation stocks have been among the hardest hit during the profit taking, with airline stocks, in particular, looking weak. Here are five airline stocks to sell as they lose altitude fast:
Delta (DAL)
Delta (NYSE:DAL) shares are threatening to fall below their 50-day moving average, setting up a revisiting of the early January lows. Such a move would be worth a loss of roughly 20% from current levels. Shares were downgraded by Deutsche Bank analysts on Mar. 1. And the sellers piled on after management reaffirmed 2019 earnings-per-share guidance on Mar. 5.
The company will next report results on April 16 before the bell. Analysts are looking for earnings of 83 cents per share on revenue of $10.53 billion. When the company last reported on Jan. 15, earnings of $1.30 beat estimates by 4 cents per share on a 5% rise in revenues.
American Airlines (AAL)
Shares of American Airlines (NASDAQ:AAL) have already fallen through their 50-day moving average, closing in on the early January lows after once again being turned away from the 200-day moving average. The stock was also downgraded by Deutsche Bank analysts on Mar. 1. Overall, shares are down by nearly one-half from the highs seen in early 2018 amid concerns about industry overcapacity threatening profitability.
The company will next report results on April 25 before the bell. Analysts are looking for earnings of 62 cents per share on revenues of $10.8 billion. When the company last reported on Jan. 24, earnings of $1.04 per share beat estimates by 3 cents on a 3.1% rise in revenues.
United Continental Holdings (UAL)
United Continental Holdings (NASDAQ:UAL) shares are down more than 2% in mid-day trading Thursday, cutting down through its 200-day moving average for a total decline of more than 10% from the highs seen in late February. The pattern traces out a nasty looking head-and-shoulders reversal pattern that points to a decline below the $60-a-share threshold of support near $80.
The company will next report results on April 16 after the close. Analysts are looking for earnings of $1.02 per share on revenues of $9.7 billion. When the company last reported on Jan. 15, earnings of $2.41 beat estimates by 39 cents per share on an 11% rise in revenues.
JetBlue Airways (JBLU)
Shares of JetBlue Airways (NYSE:JBLU) are on the slide as well, falling to test its late December lows after once again being turned away from its 200-day moving average. The movement in JBLU stock is continuing a pattern that goes back to the summer of 2017 and a long period of listlessness that started in late 2015. On Mar. 5, the company lowered its Q1 revenue guidance.
The company will next report results on April 25 before the bell. Analysts are looking for earnings of 19 cents per share on revenues of $1.9 billion. When the company last reported on Jan. 24, earnings of 50 cents per share beat estimates by 7 cents on an 11.9% rise in revenues.
Southwest Airlines (LUV)
Shares of Southwest Airlines (NYSE:LUV) have collapsed below both its 50-day and 200-day moving averages as excitement over takeover chatter and the opening of service to Hawaii has given way to fresh profit taking. A return to the late December lows would be worth a loss of nearly 20% from here. Analysts at Macquarie downgraded shares on Feb. 22.
The company will next report results on April 25 before the bell. Analysts are looking for earnings of 88 cents per share on revenues of $5.3 billion. When the company last reported on Jan. 24, earnings of $1.17 per share beat estimates by 9 cents on an 8.5% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
