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 considered 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 components that are popular with consumers and that recently saw their 50-day moving average cross above the 200-day average, a golden cross.
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Comcast Corp. (NASDAQ: CMCSA) saw its golden cross earlier this week, but so far the gap between the averages is only a few cents per share. A top insider recently sold almost 100,000 shares. The share price has risen less than 3% in the past month, while the S&P 500 has gained almost 5%. Almost all of the 31 analysts surveyed recommend buying shares.
The Hanesbrands Inc. (NYSE: HBI) moving averages crossed earlier this month, and the gap between them is up to more than 4% of the share price. This apparel maker began producing facemasks this year, which has helped on the top line. Shares are up almost 12% in the past month. The consensus recommendation is to hold shares, though analyst sentiment has shifted more positive in the past two months.
McDonald’s Corp. (NYSE: MCD) saw a golden cross this month as well. The long-term average had dropped below the other back in the March panic selling. The company blamed the pandemic for its mixed second-quarter results, but shares are up more than 9% in the past 30 days, though still 4% or so lower than a year ago. Most of the 33 analysts surveyed recommend buying shares.
Mondelez International Inc.’s (NASDAQ: MDLZ) death cross happened earlier this month, and the difference in the two averages is up to about $0.40, or less than 1% of the share price, so far. The snack foods giant hiked its dividend when it reported its most recent quarterly results. Its shares are up 5% or so in the past month. The consensus recommendation is to buy the shares.
PepsiCo Inc.’s (NASDAQ: PEP) short-term moving average crossed above the long-term one this week, reversing the death cross seen at the beginning of April. This beverage and snack maker may be lagging its main rival a bit these days. The shares are up less than 2% in the past month and essentially flat year to date. A little more than half of the 22 analysts surveyed recommend buying shares.
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