Investing

Netflix, Hertz and Other Service Providers With Recent Death Crosses

Trey Thoelcke

Published: September 4, 2019 7:05 am

Last Updated: January 30, 2020 4:41 pm

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 five stocks of popular services providers that recently saw their 50-day moving average cross below the 200-day average, a death cross.

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CBS Corp. (NYSE: CBS) saw its death cross in late August, reversing a golden cross seen earlier in the month. Analysts had mixed reactions to news that CBS and Viacom finally would merge. The stock has retreated almost 16% in the past month, though it is only down 5% or so compared with the beginning of the year. Analysts on average recommend buying shares.

CSX Corp.’s (NYSE: CSX) long-term moving average crossed above the short-term one last week, and the gap between those averages has widened to almost 2% of the share price. The effects of tariffs dragged on the transportation company in its most recent quarterly results. Its shares are down about 9% in the past 90 days, while the S&P 500 has gained around 4%. Analysts overall recommend buying shares, although the sentiment remains weak.

The fall in the Hertz Global Holdings Inc. (NYSE: HTZ) short-term moving average came despite a top-line beat posted earlier this month and a subsequent upgrade. Since last week’s death cross, the gap between the averages is up to about 1.6% of the share price. The shares have tumbled about 17% from this time a month ago. The consensus recommendation is to hold shares and has been for months.

Las Vegas Sands Corp. (NYSE: LVS) saw a death cross last week as well. It is the first time the short-term average has dropped below the other since April. The stock was downgraded recently, and its shares have been somewhat of a roller-coaster ride this summer. They are currently up marginally from 90 days ago, and most of the analysts surveyed recommend buying shares.

Netflix Inc.’s (NASDAQ: NFLX) death cross happened at the end of August, and the difference in the two averages is up to more than $4 so far. This video-streaming leader could have a rough time in the next recession, says at least one top analyst. Its shares are down about 14% from three months ago, yet still around 8% higher year to date. The consensus analyst recommendation remains to buy the shares.