Investing
Apple, Ford and Other Consumer Goods Stocks 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 broken out or is about to. 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 four consumer goods that recently saw their 50-day moving average cross above the 200-day average, a golden cross, plus one that went the other way.
Apple Inc. (NASDAQ: AAPL) saw its golden cross in early May, reversing the death cross seen in the December market sell-off. Warren Buffett continues to be a stakeholder in this consumer electronics darling. The stock is still about 16% higher year to date, despite the recent pullback, and analysts on average recommend buying shares.
Campbell Soup Co.’s (NYSE: CPB) short-term moving average crossed above the long-term one at the end of the first full week of this month, and the gap between the averages has widened to about 1%. The company’s long, slow turnaround showed some signs of life after the most recent earnings report. The shares are up more than 17% year to date, while the S&P 500 has gained less than 14%. Here, analysts overall recommend holding shares.
Last week’s Coca-Cola Co. (NYSE: KO) golden cross reversed the death cross seen back in April. This stock is another staple in the Berkshire Hathaway portfolio, as well as a top dividend pick at Merrill Lynch. Since the beginning of the year, the shares are up only 3% or so. The consensus recommendation is to buy shares, though the sentiment is somewhat weak.
Ford Motor Co.’s (NYSE: F) golden cross happened early in May. The gap between the two averages has widened to more than 3% of the share price. This big three U.S. automaker is just announced big layoffs as part of its ongoing restructuring. Its shares now are up more than 34% year to date, compared to a 10% gain for the Dow Jones industrials. Here too, analysts on average recommend holding shares.
Hormel Foods Corp. (NYSE: HRL) saw its death cross last week, and it looks like the short-term moving average hadn’t been below of the long-term one in years. This packaged foods maker is a dividend aristocrat. Its shares are down about 7% year to date, yet still around 10% higher than a year ago. The consensus analyst recommendation is to hold Hormel shares.
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