As the market continues to trade near record highs, some stocks are facing potential trouble ahead. While the S & P 500 and Nasdaq Composite reached fresh record highs recently, not all stocks are experiencing the same positive momentum. CNBC recently identified several stocks that are on the verge of forming a dreaded death cross chart pattern, indicating a potential loss of momentum and further declines.
One of the stocks highlighted is Northrop Grumman, an aerospace and defense company that has seen a 9% pullback in 2024 and is closing in on a death cross chart pattern. Despite some positive news, such as a $119 million U.S. Navy contract and a dividend increase, the stock has trended lower.
Another stock facing challenges is Zimmer Biomet Holdings, a medical device company that has struggled this year with an 11% loss. The stock briefly showed signs of improving momentum earlier this year but dropped more than 3% after management noted that quarterly results may not be as expected, raising concerns about the company’s growth prospects.
IDEX Corporation, a laboratory equipment maker, is also on the list of stocks signaling a potential death cross chart pattern. The stock briefly showed a golden cross earlier this year but has since fallen more than 11% after issuing weaker-than-expected earnings guidance for the second quarter.
Other stocks on the list include Pool Corporation and Fortive Corporation, all of which are showing signs of potential trouble ahead.
At Extreme Investor Network, we keep a close eye on market trends and provide expert analysis to help investors make informed decisions. Stay tuned for more updates on these stocks and others facing challenges in the market. Subscribe to our newsletter to receive exclusive content and investment tips to help you navigate through these uncertain times.