5 Auto and Transportation Stocks With Recent Golden Crosses

Investing

Published: November 20, 2019 7:05 am

Last Updated: January 30, 2020 12:58 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 two auto and three transportation-related stocks that recently saw (or are about to see) their 50-day moving average cross above the 200-day average, a golden cross.

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Fiat Chrysler Automobiles N.V. (NYSE: FCAU) appears poised to see a golden cross in the next few days. That would be its first since late 2016. The company is also poised to merge with PSA Group, the parent of Peugeot. Fiat Chrysler shares are about 17% higher than a month ago but less than 9% higher year to date. Three of four analysts surveyed recommend buying shares.

Tesla Inc.’s (NASDAQ: TSLA) short-term moving average crossed above the long-term one earlier this month, and the gap between the averages is up to about $23, or over 6% of the share price. Tesla now has competition in a new electric SUV from Ford. Its shares are up around 42% in the past month and taking a run at the 52-week high seen almost a year ago. However, analysts overall recommend holding shares.

The rise in the JetBlue Airways Corp.’s (NASDAQ: JBLU) short-term moving average began in earnest in late October, and it crossed above the 200-day average this week. JetBlue has no Boeing Max 737 jets and so is unaffected by their grounding. Its shares are up almost 11% from this time a month ago. Still, the consensus recommendation is to hold shares and has been for months.

Train maker Wabtec Corp. (NYSE: WAB) saw its golden cross last week, the first time in nearly a year the short-term average has been on top. The company posted better than expected third-quarter earnings at the end of October. Shares are up more than 14% in the past 30 days, and the consensus recommendation of the analysts surveyed is to buy shares, though the sentiment is weak.

Caterpillar Inc.’s (NYSE: CAT) golden cross happened earlier this month, and the difference in the two averages is up to more than $2, which is less than 2% of the share price, so far. The maker of construction and farming vehicles has been a Dow Jones industrial laggard this year. Its shares are down marginally in the past week but still 13% or so higher year to date. The consensus recommendation is to hold on Caterpillar shares.