U.S. equities have stalled on Wednesday as Wall Street prepares for a barrage of catalysts including policy decisions by the Federal Reserve and European Central Bank as well as the outcome of the United Kingdom’s latest election — which will have implications for whether or not Brexit actually happens.
We are also fast approaching the Dec. 15 deadline for U.S.-China trade talks, and a lack of progress will likely lead to another round of higher import tariffs. So overall, there’s plenty for investors to worry about.
It should be no surprise then that a number of well-known stocks are rolling over. Here are four names that look like good stocks to sell before volumes thin out towards the end of the year.
Stocks to Sell: Boeing (BA)
Boeing (NYSE:BA) is the biggie here, with the Dow Jones Industrial Average component falling towards its August low after the head of the Federal Aviation Administration told the U.S. Congress that the 737 MAX will not return to service before the end of the year. This was the linchpin of the bulls’ case for the stock. And it’s been completely undermined, overshadowing news earlier this week that the company had bagged 30 new orders for the 737 MAX.
When the company next reports quarterly results, analysts are looking for earnings of $1.89 per share on revenues of $21.2 billion.
Southwest Airlines (LUV)
Shares of Southwest Airlines (NYSE:LUV) are losing altitude fast, falling below their 50-day moving average and careening towards their 200-day average in what looks like a likely retest of the lower end of a three-year consolidation range near $44. Hitting that consolidation range would be worth a loss of nearly 20% from here.
The company will next report results on Jan. 23 before the bell. Analysts are looking for earnings of $1.15 per share on revenues of $5.7 billion.
Delta Air Lines (DAL)
Shares of Delta Air Lines (NYSE:DAL) are also losing altitude fast, already below the 50-day and 200-day moving averages. Already down nearly 13% from its late July high, watch for a drop to last December’s lows near $44, which would be worth a loss of 20% from here. UBS recently initiated coverage on the stock with a “sell” rating.
When the company next reports quarterly results, analysts are looking for earnings of $1.38 per share on revenues of $11.3 billion.
Zynga (NASDAQ:ZNGA) shares are rolling below their 50-day and 200-day averages, after once again bonking on overhead resistance near the $6.50 per-share level. A breakdown here would likely set the stage for a return to the two-year trading range centered near $4.
When the company next reports quarterly results, analysts are looking for earnings of 5 cents per share on revenues of $418.4 million.
As of this writing, William Roth did not hold any of the aforementioned securities.