Investing
Dish Network, eBay and Other Stocks With Recent Death 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 five S&P 500 stocks that recently saw their 50-day moving average cross below the 200-day average, a death cross.
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Church & Dwight Co. Inc. (NYSE: CHD) saw its death cross last week, but so far the gap between the averages is less than 1% of the share price. This maker of household and personal care products recently posted better than expected quarterly earnings. Yet, shares have retreated more than 5% in the past month, while the S&P 500 has gained more than 3%. Only three out of 21 analysts surveyed recommend buying shares.
Colgate-Palmolive Co.’s (NYSE: CL) long-term moving average also crossed above the short-term one last week, reversing the golden cross seen back in March. This consumer goods company also posted an earnings beat, and its shares are less than 2% lower than a month ago. They are still up more than 13% year to date. Here too, analysts on average recommend holding shares.
The Dish Network Corp. (NASDAQ: DISH) moving averages have been entwined this month, after about a $5 gap (14% or so of the share price) seen back in the summer. Earlier this month, Dish Network reported better than expected earnings. Shares have been both down more than 2% and up more than 6% in the past month. The consensus recommendation is to hold shares and has been for months.
eBay Inc. (NASDAQ: EBAY) saw a death cross last week as well. The long-term average dropped below the other early March. A third-quarter earnings beat was accompanied by downbeat guidance, and shares are now down more than 11% in the past 30 days, but still almost 21% higher year to date. Most of the analysts surveyed recommend holding shares.
Travelers Companies Inc.’s (NYSE: TRV) death cross happened earlier this month, and the difference in the two averages is up to about $2.80, or around 2% of the share price, so far. The stock has been a Dow Jones industrial average laggard. Its shares are down more than 4% in the past month but still more 15% year to date. The consensus recommendation is to hold the shares.
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