7 Stocks to Sell in June

Even without the help of tariff fears, these are 7 good stocks to sell

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U.S. equities are falling hard on Friday, continuing a week of losses, as a cavalcade of global macro factors weigh on sentiment. The big news was that President Donald Trump is threatening to enact tariffs against Mexico unless it curbs illegal immigration through the southern U.S. border. This caps long-running hints that Trump could close the southern border altogether to force Mexico to act and follows his declaration of a national emergency at the southern border.

Separately, U.S.-China trade tensions continue to simmer, the political situation in Europe is growing more nationalistic, with Italy facing off against the European Commission, and the start-up bubble seems to be bursting, with Uber (NYSE:UBER) continuing to decline as the company announces it will reduce promotions in a bid to boost profitability.

There’s a lot of bad news to digest, and Wall Street seems to only now be awakening to that fact. As a result, here is a list of seven stocks to sell as we head into June:

Stocks to Sell: Ford (F)

Stocks to Sell: Ford (F)

Shares of Ford (NYSE:F) are down roughly 3% in mid-day trading as investors worry that Trump’s tariffs on Mexican imports will directly impact the company’s bottom line. Roughly 18% of its U.S. sales are built in Mexico. This will start as a small problem — with a 5% tariff starting on June 10 — but eventually become big. The tariff will increase to 25% in October unless Mexico takes action.

The company will next report results on July 25 after the close. Analysts are looking for earnings of 32 cents per share on revenues of $35.9 billion. When the company last reported on April 25, earnings of 44 cents per share beat estimates by 17 cents on a 3.9% decline in revenues.

Stocks to Sell: JPMorgan (JPM)

JPMorgan (JPM)

With long-term interest rates falling, big bank net interest margins are under growing pressure. Thus, big bank stocks like JPMorgan (NYSE:JPM) are getting hit, pushing shares down below their 200-day moving average for the first time since April. Watch for a likely decline to the late-March low, which would be worth a loss of roughly 8% from here.

The company will next report results on July 16 before the bell. Analysts are looking for earnings of $2.54 per share on revenues of $28.8 billion. When the company last reported on April 12, earnings of $2.65 beat estimates by 30 cents on a 4.4% rise in revenues.

Stocks to Sell: Cliffs Natural Resources (CLF)

Cliffs Natural Resources (CLF)

Iron ore miner Cliffs Natural Resources (NYSE:CLF) is suffering as shares fall down and out of a long consolidation range to return to lows not seen since early January. The decline comes despite a recent increase to the quarterly dividend and an upgrade by analysts at Credit Suisse. The problem is worry that a slowdown in global trade will hit demand for metals, which will dent demand for ore.

The company will next report results on July 19 before the bell. Analysts are looking for earnings of 51 cents per share on revenues of $610.6 million. When the company last reported on April 25, a loss of eight cents per share beat estimates by six cents on a 12.8% decline in revenues.

Stocks to Sell: Johnson & Johnson (JNJ)

Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) shares are continuing to fall further away from their 200-day moving average, closing in on their January lows to exit a four-month consolidation range. The stock is being weighed down by the start of a first-of-its-kind opioid liability lawsuit in Oklahoma and reports of a $300 million judgement in a New York lawsuit over its talc powder.

The company will next report results on July 16 before the bell. Analysts are looking for earnings of $2.40 on revenues of $20.3 billion. When the company last reported on April 16, earnings of $2.10 beat estimates by six cents on a 0.1% rise in revenues.

Stocks to Sell: eBay (EBAY)

eBay (EBAY)

Shares of online auction icon eBay (NASDAQ:EBAY) are threatening to fall down and out of a four-month consolidation range as its 20-day moving average closed below its 50-day average for the first time since January. The prior gap near $31 is a likely downside target and would be worth a loss of roughly 14% from here. Rumors that the company could soon start accepting cryptocurrencies haven’t had the results the bulls were hoping for.

The company will next report results on July 17 after the close. Analysts are looking for earnings of 62 cents per share on revenues of $2.7 billion. When the company last reported on April 23, earnings of 67 cents per share beat estimates by four cents on a 2.4% rise in revenues.

Stocks to Sell: Best Buy (BBY)

Best Buy (BBY)

Best Buy (NYSE:BBY) shares are falling further away from their 200-day moving average after succumbing to a head-and-shoulders reversal pattern over the last four months. Watch for a possible decline back to the January-February trading range, which would be worth a loss of 8% from here. Shares have been sliding in recent days despite the reporting of solid results earlier in the month. There are worries about a slowdown in gaming, smartphone saturation, and tough year-over-year comparisons.

The company will next report results on Aug. 27 before the bell. Analysts are looking for earnings of 99 cents per share on revenues of $9.6 billion. When the company last reported on May 23, earnings of $1.02 per share beat estimates by 15 cents on a 0.4% rise in revenues.

Stocks to Sell: Amazon (AMZN)

Amazon (AMZN)

Amazon (NASDAQ:AMZN) shares are dropping below the $1,800 level and are looking set for a drop below their 200-day moving average after failing to recapture the prior highs set last summer. The latest is that the company could be considering a push into the wireless space with a possible purchase of Boost Mobile from Sprint (NYSE:S)/T-Mobile (NASDAQ:TMUS). The focus continues to be on the strong growth at Amazon Web Services, but that isn’t generating the excitement among investors that it used to.

The company will next report results on July 25 after the close. Analysts are looking for earnings of $5.51 per share on revenues of $62.5 billion. When the company last reported on April 25, earnings of $7.09 beat estimates by $2.43 on a 17% 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/2019/05/7-stocks-to-sell-in-june/.

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