Investing
Coca-Cola, T-Mobile and Others With Recent Golden Crosses
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Golden crosses and death crosses are common signals in technical analysis and refer to the relationship between short-term and long-term moving averages. The golden cross typically is seen as a bullish sign, perhaps a stock that has or is about to break out. The death cross, on the other hand, can be a bearish sign, perhaps warning investors to get out of the way or signaling that it may be time short the stock.
Here are three beverage stocks and two telecoms that recently saw their 50-day moving average cross above the 200-day average, a golden cross, and could be considered contrarian plays.
Coca-Cola Co. (NYSE: KO) saw its golden cross earlier in August, and since then the gap between the two averages has widened to more than 1% of the share price. The stock remains one of the top five Warren Buffet holdings. Shares are less than 6% higher in the past six months, and analysts on average recommend buying shares.
Monster Beverage Corp.’s (NASDAQ: MNST) golden cross occurred last week, but the short-term average hasn’t risen much since then. The company is a Tiger Woods sponsor that got exposure from his recent PGA tournament performance. The shares are down more than 6% from six months ago, and analysts recommend buying shares.
PepsiCo Inc.’s (NYSE: PEP) golden cross came mid-month, and the gap is up to about a buck and a half. The company named a new CEO early this month and more recently bought SodaStream. Year to date, PepsiCo shares are up 2% or so, and note that the buy sentiment among analysts is somewhat weak.
Sprint Corp. (NYSE: S) saw its golden cross in the middle of the month as well, as the 200-day moving average has retreated more than 6% year to date. The stock remains one of the most shorted of those trading on the New York Stock Exchange. But shares are up more than 17% in the past six months. Analysts on average still recommend holding shares.
T-Mobile US Inc. (NASDAQ: TMUS) also saw a mid-month golden cross, which was its second one this year. The company recently admitted that up to 3 million of its customers were affected by a data breach. Yet its shares are up more than 8% year to date, on last look. Here too analysts recommend holding the shares.
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