5 Blue-Chip Stocks That Are a Threat to the Dow
The Dow Jones Industrial Average continues to flirt with the 26,000 level, spending the last two sessions oscillating above and below that key threshold. As it stands now, above the level, this marks the quickest 1,000 point round number jump in history.
But with a possible government shutdown looming, volatility reappearing and the U.S. dollar careening ahead of a Federal Reserve policy meeting later this month, the market is looking incredibly fragile here.
More so with the growing list of big-cap blue-chips that are rolling over amid profit taking. Sure, names like Boeing Co (NYSE:BA) continue their relentless rises. But investors are bagging profits in many others names, including GE. Here are five to watch:
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Troublesome Blue-Chip Stocks: General Electric (GE)
General Electric Company (NYSE:GE) shares have reversed lower over the last few trading sessions, returning to lows set in November and December as investors react negatively to news the company will take a larger-than-expected write down related to its legacy reinsurance business.
The company will next report results on Jan. 24, before the bell. Analysts are looking for earnings of 28-cents-per-share on revenues of $32.7 billion. When the company last reported on Oct. 20, earnings of 29 cents missed estimates by 20 cents on an 11.5% rise in revenues.
Troublesome Blue-Chip Stocks: Apple (AAPL)
Apple Inc. (NASDAQ:AAPL) shares are struggling to overcome three-month resistance levels near $180 as the hype surrounding the iPhone X has given way to indications of tepid demand as consumers balk at the $1,000+ price tag. Analysts have been highlighting some concern, with Longbow issuing a downgrade, while Cowen is worried about price erosion heading into the new fiscal year.
The company will next report results on Feb. 1, after the close. Analysts are looking for earnings of $3.94-per-share on revenues of $85.8 billion. When the company last reported on Nov. 2, earnings of $2.07-per-share beat estimates by 20 cents on a 12.2% rise in revenues.
Troublesome Blue-Chip Stocks: Goldman Sachs (GS)
Goldman Sachs Group Inc (NYSE:GS) shares are being slammed down to their 50-day moving average, off 2% as I write this, in the wake of disappointing quarterly results. Shares had rallied roughly 40% from their lows last summer into the high set in December. But congestion from the early 2017 highs near $255 and today’s disappointing numbers has investors selling.
While Q4 earnings and revenues beat estimates, the top-line fell 4.2% from last year, while revenue from fixed income, currency and commodities trading fell 50% from last year due to a low volatility environment.
Troublesome Blue-Chip Stocks: Nike (NKE)
Nike Inc (NYSE:NKE) shares are threatening to fall out of a two-month consolidation range in what could see a partial reversal of the 30% rally off of the October lows. The move returned prices to levels last seen in late 2015. Recent results have been tepid, with profitability coming under pressure.
The company will next report on Mar. 22, after the close. Analysts are looking for earnings of 52-cents-per-share on revenues of $8.8 billion. When the company last reported on Dec. 21, earnings of 46-cents-per-share beat estimates by 6 cents on a 4.6% rise in revenues.
Troublesome Blue-Chip Stocks: Verizon (VZ)
Verizon Communications Inc. (NYSE:VZ) shares are rolling lower, threatening to break out of a three-month consolidation range that capped a 20% rally out of its mid-November lows. Shares have been hit with negative headlines, including a downgrade from analysts at MoffettNathanson. The lift the sector enjoyed related to net neutrality has not faded, as investors are reminded of the intense price competition that continues to plague the wireless carriers.
The company will next report results on Jan. 23, before the bell. Analysts are looking for earnings of 88-cents-per-share on revenues of $33.2 billion. When the company last reported on Oct. 19, earnings of 98 cents beat estimates by a penny on a 2.5% rise in revenues.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
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