Investing in stocks can be a rollercoaster ride, especially when certain companies are on the verge of entering a death cross. A death cross occurs when a stock’s 50-day moving average falls below its 200-day moving average, signaling bearish sentiment among investors and potential weakness in the stock’s momentum. Today, we will discuss three major companies that are either experiencing a death cross or are on the brink of entering one, as reported by CNBC Pro.
First up is Intel, a semiconductor giant that has already seen its share price plummet by 38.5% year-to-date, making it the worst-performing tech stock in the S & P 500 this year. The company disappointed Wall Street with its first-quarter earnings, falling short on revenue and delivering a weak forecast for the current quarter. Analysts are concerned about Intel falling behind competitors in the data center compute market, such as Nvidia and Arm, as demand shifts towards AI infrastructure spending by cloud and enterprise customers.
Next, we have McDonald’s, the fast-food chain that has also drawn a death cross. The company’s stock is down 8.8% this year, facing challenges amidst a consumer spending pullback and boycotts related to the conflict in Gaza. McDonald’s missed first-quarter earnings estimates, with same-store sales failing to meet expectations.
Lastly, CVS Health is nearing a death cross, with shares falling nearly 30% year-to-date and dropping about 17% in just one week. The company missed revenue and adjusted earnings expectations, along with lowering its full-year profit outlook due to rising medical costs. Analysts at UBS downgraded CVS shares to neutral, citing concerns about the complexity of addressing the areas of the business that need a reset for improved margins.
In conclusion, it is essential for investors to stay informed about the latest trends and developments in the market, especially when it comes to companies facing potential challenges like the ones mentioned above. Stay tuned for more insights and analysis on investing strategies and trends from Extreme Investor Network.
