Monthly Archives: August 2018

Growth Stocks

5 Cheap Stocks to Buy Before They Soar

penny stocks

Source: Shutterstock

The stock market is a mess right now.

Ever since Facebook (NASDAQ:FB) dropped the ball on its most recent earnings report, the whole tech sector has rolled over and markets have dropped. Since the FB earnings report, the S&P 500 has shed 1.5%, while the NASDAQ-100 is off more than 4%.

The broad market volatility, however, does not change the bull thesis on cheap stocks. In the cheap, sub-$5 group, macro market movements can cause some noise in shares. But, the investment thesis on cheap stocks is predicated on huge moves higher in the long-term. Thus, near-term, macro-driven movements amount to nothing more than a side show.

From this perspective, now might be a good time to pile into some stocks under $5. These stocks are a high-risk bunch. But, they do have high-reward potential, too. Just look at the three stocks under $10 that I recommended buying in late March (Francesca’s (NASDAQ:FRAN), Express (NYSE:EXPR), and Pandora (NYSE:P).

All three stocks were considered high-risk losers at the time. Since, they have all risen by more than 30%.

With that in mind, here is a list of five cheap stocks, which I think have equally big upside potential over the next several months.

5 Cheap Stocks to Buy Before They Soar: Pier 1 (PIR)

Source: Shutterstock

Furniture retailer Pier 1 Imports (NYSE:PIR) has had a tough time getting its act together for several years.

Peer Restoration Hardware (NYSE:RH) has seen its stock more than double over the past year thanks to a red-hot housing market and robust demand for home furnishings. PIR stock, however, has collapsed by 50% during that same stretch. These problems aren’t new. Over the past five years, this stock has lost 90% of its value.

Having said that, there is visibility for a turnaround in PIR stock in the near future.

At its core, Pier 1 has been killed by rising e-commerce threats creating huge pricing and traffic headwinds. Pier 1, which stands somewhat square in the middle of price and quality, doesn’t really have anything special about the business to protect against these headwinds. Consequently, sales and margins have dropped in a big way.

But, the company recently unveiled a three-year strategic plan to turn the business around. The plan includes a re-launch of the Pier 1 brand this fall and bigger investments into omni-channel commerce capabilities and marketing.

No one knows whether or not this plan will actually work. But, home furnishings is a market with enduring demand, so that helps. Plus, search interest related to the company is actually starting to grow on a year-over-year basis, illustrating that this plan is off to a good start.

Meanwhile, PIR stock is dirt cheap. This company used to have earnings power of $1 per share. Even half of that earnings power ($0.50) would be huge for a $2 stock. At $0.50 per share in earnings power, it wouldn’t be unreasonable to see this stock hit $8 (a market-average 16x multiple).

Source: Shutterstock

Much like Pier 1, savings-king Groupon (NASDAQ:GRPN) feels like one of those companies that was loved yesterday but will be forgotten tomorrow.

But, I don’t think that’s true. I get that the savings and deals market is commoditized now. I also understand that Groupon really isn’t a household name for coupons like it used to be.

But, I’m a numbers a guy. And the numbers are pretty good here. The customer base is actually still growing (up more than 2% year-over-year last quarter). Thus, global popularity of the Groupon platform is only growing.

Meanwhile, margins are improving thanks to management’s focus on higher-margin businesses. Operating expenses are also being removed from the system, so the company’s overall profitability profile is dramatically improving (gross profit per active customer on a trailing twelve month basis was up 3% year-over-year last quarter).

Aside from the numbers, Groupon has also launched an aggressive advertising campaign with hyper-relevant Tiffany Haddish. I think this campaign will have a long-term positive effect on usage, which could drive the stock higher.

Plus, the company is putting itself up for sale, and some analysts think this company can fetch a $12 takeover price.

Put it all together, and it looks like GRPN stock could have a big time rally in the back half of 2018.

5 Cheap Stocks to Buy Before They Soar: Zynga (ZNGA)

Source: Brownpau via Flickr (Modified)

I’m not a huge fan of the mobile gaming sector. It’s a tough space plagued with competition and low margins. Plus, competition is only building thanks to social media apps becoming increasingly multi-purpose.

But, mobile gaming company Zynga (NASDAQ:ZNGA) seems to have found the key to success in the mobile gaming world.

Zynga used to be a mega-popular browser game company with tons of users. But then the company overreached by branching into games that had heavy overlap with the traditional video game market, like sports titles. They couldn’t compete in that market. Eventually, the over-extension sparked user churn, and ZNGA stock spiraled downward.

That forced Zynga to re-invent itself into something much more relevant and defensible. They did just that. Zynga has transitioned its business model from web-focused to mobile-first while narrowing its gaming title focus. This pivot has streamlined operations, re-invigorated top-line growth, cut costs and improved profitability.

Consequently, the numbers supporting Zynga are pretty good. Mobile revenue growth was 13% last quarter. Mobile bookings growth was 10%. The company also reported its biggest mobile audience in over four years, with 23 million mobile daily active users (+24%) and 82 million mobile monthly active users (+30%). Zynga also reported a net profit in quarter, versus a loss in the year ago quarter.

From where I sit, this pivot appears to be in its early stages. Mobile is a secular growth narrative, and ZNGA has developed a gaming portfolio that is focused and tailored to that growth narrative. Thus, so long as mobile engagement heads higher, Zynga’s numbers should get better. Better numbers will inevitably lead to a higher stock price.

5 Cheap Stocks to Buy Before They Soar: Arotech (ARTX)

Source: arotech.com

There is no hiding the fact that the defense sector is hot right now.

President Donald Trump came into office, upped the ante on defense and military spending, and in response, the whole world is spending more on defense and military.

Defense contractors win when this happens. That is why mega-cap defense contractors like Lockheed Martin (NYSE:LMT) and Boeing (NYSE:BA) have been on fire for the past several quarters.

But one micro-cap defense contractor that has missed out on this rally is Arotech (NASDAQ:ARTX). Over the past several years, the financials at Arotech haven’t gained any ground. Five years ago, revenues were $88 million and operating profits were $3.5 billion. Last year, revenues were $98 million and operating profits were $2.9 million.

In other words, profits haven’t risen in five years. When profits don’t go up, the stock tends not to go up. It is a simple relationship.

But, profits are stabilizing. Adjusted earnings are expected to be between $0.15 and $0.18 per share this year, versus $0.17 per share last year. When profits go from declining to stabilizing, they usually go to growth next.

And, when profits go up, stocks tend to go up.

As such, it looks like Arotech is finally joining the tide when it comes to big boosts in defense and military spending. This tide will inevitably lift Arotech’s earnings power substantially, and ARTX will rally as a result.

5 Cheap Stocks to Buy Before They Soar: Blink Charging (BLNK)

Source: Shutterstock

When it comes to cheap stocks, there are few as volatile as Blink Charging (NASDAQ:BLNK).

Over the past year alone, BLNK stock has gone from $30 to $5 in a multi-month slide, before popping from $5 to $15 in a few days. Then, it slid for a few weeks to $9, before plunging overnight to $3. BLNK stock slid to under a $1.50 in a few weeks, then rallied to over $6 in a few days. Ever since, it has slid for a few months to under $3.

This volatility won’t give up any time soon. Thus, if you want to avoid volatility, I’d say avoid BLNK stock.

That being said, if this company’s secular growth narrative surrounding building a network of electric vehicle charging stations globally materializes within the next 5 years, this stock could be a 5-to-10 bagger.

It is a big risk. But, eventually, global infrastructure will need to match demand. At that point in time, there will be some huge contracts awarded to electric vehicle charging station companies.

Will Blink be one of them? Perhaps. Tough to tell. But if they do land some big contracts, this stock could have another huge pop in a short amount of time.

As of this writing, Luke Lango was long FB, PIR, GRPN, and ARTX.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.
Dividends

How to Bank $7,050 in Cash Payouts in 4 Weeks

I was not supposed to be sharing my favorite income strategy (for weekly payouts) with you today. But I convinced my publisher to make an exception – so please take advantage of his rare act of leniency and read this carefully today.

As you probably know I’m the rare “income guy” who thinks that these “elevated” Treasury yields are still a joke. As I write, the 10-year IOU from Uncle Sam is rallying back towards 3%. Is anyone who is not already rich retiring off of these yields?

A 3% yield on a $1 million portfolio generates just $30,000 per year before taxes. A better idea is my now-famous “No Withdrawal” Portfolio, which currently pays a blended 7.7% yield. Put the same million bucks into it, and you’ll receive $77,000 per year in dividends – with potential gains upside to boot:

BUT – what if you don’t have $1 million? Or need more in income than $77,000 annually? That’s where my dividend accelerator comes in.

Don’t Reach for Dicey Dividends – Accelerate Secure Ones, Instead

Many income investors get desperate and reach for double-digit yields. Unfortunately most are dividend traps. (If these payouts were safe, the stocks or funds would already be in our No Withdrawal Portfolio!)

Let’s pick on Triangle Capital (TCAP), a business development company (BDC) that pays 10.2% today. On the surface, this looks great. Unfortunately for each dividend payment investors receive, they tend to lose more in price erosion:

TCAP: It’s a (Dividend) Trap!

Low yields on blue chip stocks make yield seekers thirsty enough to consider traps like TCAP. Fortunately, there’s a better way – and it’s as easy as buying or selling any blue chip stock.

Rather than “buying and hoping” that a modest paying stock will also go up in price, I prefer to accelerate its 1% or 2% yield into weekly payouts that annualize to 20%+. Here’s how.

Safer – and More Profitable – Than Buying Stocks Outright

When I mention stock options to “basic” investors, they tend to have one of two levels of experience:

  1. They stay away from options (perceiving them as a form of gambling), or
  2. They buy options (which is a form of gambling).

Few are aware of the third – vastly superior – option:

  1. Selling options to the gamblers, banking the premiums as weekly income.

Why is it better to be a seller than a buyer? The real question is when – it’s better to be a seller than a buyer when options are within 30 days of expiration.

We have a phenomenon called “option decay” to thank. Stock options, after all, have two dimensions:

  1. Their strike price – the level the stock needs to be for the option to pay, and
  2. Their expiration date – the time-based deadline for this to happen.

Put options are bets that a stock will decline in price. Call options are bets on a bullish move higher. Both “decay” in price as they get closer to expiration, and their prices decline faster and faster the closer we get. As a seller, I like to catch the last 30 days – which really tips the odds in my favor:

I also prefer selling put options on high quality dividend payers and growers. And, if you choose right (and I’ll show you how in a minute), you’ll be amazed with the level of payouts that you can generate with this safe strategy (I’m talking about 20%+ cash returns per year).

It’s safe because we only use it on stocks we’d be happy to own outright. Selling puts on the best blue chip dividend payers gives us a “heads we win, tails we win” outcome:

  1. If the put expires worthless (the most likely scenario), then we bank the put premium free and clear without ever having to buy the stock.
  2. If the stock declines below the put price, then we still keep our premium – and we get to purchase the stock at a discount.

Once you learn this strategy, you’ll probably never want to buy a stock outright again. After all, why would you want to pay the “list price” when you can lock in a discount – or simply use the strategy to accelerate pedestrian yields to 20% or higher!

Here’s an Example Using an Excellent Utility Stock

“First-level” thinking says that utility stocks sink as interest rates rise. Since these “bond proxies” are nothing more than pretty yields to many investors, their payout attractiveness wanes as competition from fixed income rolls in.

This may be true for stalwarts like Duke Energy (DUK) and Southern Company (SO), which are merely giving their investors token annual raises. Their dividends have climbed only 12% and 7% respectively over the last three years combined.

These stocks are indeed basically bond proxies.

But not all utilities should be sold in advance of rising rates. There’s a notable exception that leaves these tortoises (and their middling dividends) in the dust.

NextEra Energy (NEE) is the largest developer of renewable energy in North America. The firm has been a fast grower for decades. It’s increased its dividend for 23 straight years.

And these have been meaningful raises – NextEra has shown up its peers with 149% dividend growth over the last decade (versus just 26% for the utility sector’s widely marketed ETF):

Why NEE is the Best Utility to Buy

Thanks to the firm’s most recent payout raise, it now shovels out $1.11 per share per quarter (for 2.7% yearly). But we can accelerate this payout to 19.5% yearly.

That’s exactly what my Options Income Alert subscribers and I have done four times in the last fourteen months. My readers who sold 10 contracts per trade banked $7,050 in cash payouts without ever having to buy NEE!

$7,050 in Payouts in Just 4 Weeks

We turned NEE into our “personal dividend ATM.” We simply tapped it anytime I saw a setup that I liked – and then placed the put premiums directly on our pockets.

NEE’s Put Premiums: Weekly Payouts Averaging $1,762.50

And again, these trades were as simple as buying or selling any stock (or CEF). We simply sold put options on NEE instead of buying or selling the stock itself.

It was just a different click of the mouse. And if you’re interested in turning NEE into your personal ATM, then this click will net you $1,850 in two-and-a-half short weeks:

Click Here for $1,850 in Payouts

Can I give you a hand with the specifics? If so, I have some easy-to-follow instructions that you can get started with today.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.
Technology

Is It Time to Bail on the FAANGs?

In recent months, it has gotten harder to separate the performance of the U.S. stock market from the performance of the FAANG stocks (Facebook, Amazon, Apple, Netflix and Google/Alphabet).

Despite Facebook’s face-plant, after its earnings announcement led to the worst one-day loss ever for any stock, the overall performance of the market year-to-date has been supported by the FAANG group. While they’re only a 13.6% weight in the S&P 500’s market cap, they’re driving the market up to the tune of almost half of its year-to-date gains. Impressive stuff for just 5 stocks on their own. Here is a chart from Bespoke Investment Group that displays that fact graphically.

The question facing investors is, of course, whether the FAANG stocks will continue carrying the market or if their leadership is beginning to fade.

Tech Divergence

Investors have taken it as gospel that tech stocks promise unending growth, based on the over-arching macro-trend of a digital revolution across society. This makes them different from other stocks whose growth are more tied to the ebbs and flows of the underlying economy.

As for the FAANGs, they have huge valuations for a reason – these companies have built huge franchises, allowing them to still grow fast, despite their size. That’s why, with the exception of Netflix, their stock market valuations have topped $500 billion and Amazon, Apple and Alphabet are approaching the $1 trillion valuation mark.

Related: Facebook, We Have a Problem

The latest earnings reports seem to show that the fortunes of these stocks are starting to diverge. In other words, some companies like Amazon continue to perform, while others like Facebook are facing more headwinds. This makes sense since they are in very different businesses.

  • Facebook’s playing fast and loose with user data resulted in slowing user growth and engagement as well as slowing sales growth.
  • With Google, investors chose to focus on how smartphones contributed to outsized growth and profits, while completely ignoring that Google plays more fast and loose with data than Facebook does.
  • With Netflix, it was expectations that were too high. Its stunning stock-price rally came crashing to a halt after it reported 1million fewer subscribers than investors had expected.
  • Amazon did not disappoint though. It blew past Wall Street earnings forecasts as its diversification into higher-margin cloud computing and the dominance of its online retail business produced the first $2 billion quarterly profit in its history

One area that I will be watching in the weeks and months ahead is whether executives at these firms continue to sell their stock. FANG insiders, led by Facebook’s Mark Zuckerberg (he sold $2.84 billion of FB stock) are selling stock at the fastest pace in six years. Senior executives and directors of Facebook, Amazon, Netflix and Google parent Alphabet have disposed of $4.58 billion of stock this year, according to data compiled by Bloomberg. They’re on track to exceed $5 billion for the first six months of 2018, the highest since Facebook went public in 2012.

Obviously, continued selling when a stock is still dropping is never a good sign.

What the Future Holds

So what will the future hold for these tech megagiants? Eventually, their growth rate will slow.

As to the why, that was pointed recently by Mary Meeker, a partner at the Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers. She said the landscape was getting more competitive for tech companies now that more than half of the world’s population are online. Internet users will hit 3.6 billion people this year, reaching a majority of the world’s population for the first time, according to a new report from Ms. Meeker. Growth in the number of new internet users is also slowing markedly, she said, from 12% in 2016 to 7% last year. She believes that when you get to a market with 50% penetration, new growth becomes more difficult to find. The smartphone market is proof of that.

She also thinks the giant giants will come more and more into competition with themselves. We already see that in the cloud computing sector with Amazon leading Microsoft and Google. And we are starting to see that in the digital advertising space where Amazon is moving into the territory of Google and Facebook. And also in media where Amazon is taking on Netflix.

So which of these big tech stocks should you own?

I strongly dislike the companies that make money from people’s data – Facebook and Google. I believe they will have to revamp their entire business model as the rest of the world seems to be moving toward European style of regulation to protect citizens’ privacy and away from the American all-is-fair-game model.

I am neutral on Netflix and Apple. Netflix is facing a ton of competition all over the world, including some very heavy competition to come soon from Disney. And its sky-high valuation implies investors are oblivious to the fact that it has competition.

Related: Buy These Streaming Giants as Netflix’s Challenges Grow

I like Apple, but the nearly no-growth global smartphone has me hesitant on it. Although its services business is doing extremely well. I just wish the company would do something innovative, something it hasn’t done since the death of Steve Jobs.

That leaves Amazon and Microsoft, both of which I like a lot. Amazon is already in, or will be soon, every business that touches consumers’ everyday lives. The only thing that could stop the Amazon juggernaut is if the Trump Administration does pursue some sort of anti-trust action.

Microsoft has transformed itself into a growth company once again under the leadership of CEO Satya Nadella. Leading the way is its Azure cloud business. The number of new customer contracts worth more than $10 million for the company’s Azure cloud platform doubled in the latest quarter. Wall Street had been expecting the rate of growth in Azure revenues to moderate, slowing to 77%. But the business continued its recent streak to rise 89% and underpin overall sales growth of 17% to $30 billion, leading to Microsoft’s strongest revenue quarter in years. With Microsoft at or near the lead in edge computing, quantum computing and AI, it and Amazon looks like the best of the big tech stocks.

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Market Preview

Market Preview: Earnings from DowDuPont, Kraft, and the Trade Deficit

August may have arrived with the Fed, but investors can’t leave for the month just yet. As expected, the Fed left rates unchanged Wednesday afternoon, but the first paragraph of the Open Market Committee statement used some form of the word “strong” four separate times. The consensus is that Chairman Powell wants to leave no room for ambiguity: The Fed will raise rates again in September at its next meeting.

More earnings are on tap for Thursday as investors parse earnings from CBS (CBS) and DowDuPont (DWDP). CBS will draw more attention than usual with the recent sexual misconduct allegations against CEO Les Moonves. Mr. Moonves is expected to take questions from analysts on the company’s conference call. Analysts will be watching DowDuPont to see if revenue can keep pace with earnings at the chemical maker. Recent reports indicate that cost cutting is more responsible for earnings than increasing revenue. Investors would like to see revenue growth more in line with the industry average.

As for economic numbers, the market will parse the Jobless Claims report on Thursday morning. There will likely be a great deal of conversation about how “strong” the numbers are after the Fed Statement. Factory Orders will also be released at 10am. Friday attention will turn back to trade as the U.S. Trade Deficit numbers are released. The deficit will widen, as goods numbers, already released, showed the deficit growing. The question will be how wide the deficit is when services are added.

Friday will also see earnings from Kraft Heinz (KHC) and Dish Networks (DISH). Sales at Kraft Heinz fell over 3% in the U.S. last quarter. Analysts are looking for another decline this quarter, so any positive news could move the stock up. Dish investors will be looking for any news on progress toward building a 5G wireless network. The company has billions of dollars in spectrum it purchased several years ago from bankrupt sellers. The spectrum will be taken from the company by the FCC in a little over a year-and-a-half from now if the company does not show it is being used.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.
Bear

This Is Telling Me the Market May Take a Break

D.R. Barton, Jr.D.R. BARTON, JR.

Last month, I showed you how lots of stocks had been participating in upside moves, not just the FANGMA – Facebook Inc. (Nasdaq: FB), Apple Inc. (Nasdaq AAPL), Netflix Inc. (Nasdaq: NFLX), Google/Alphabet Inc. (Nasdaq: GOOGL), Microsoft Corp. (Nasdaq: MSFT), and Amazon.com Inc. (Nasdaq: AMZN) – heavyweights.

Now, I’ve likened breadth, which I’ll tell you a little more about, to my “canary in the coal mine.” And by far my favorite way to see whether the canary starts to feel queasy is by watching the cumulative advance/decline line.

As a quick reminder, this indicator starts with a daily breadth number. Breadth is the number of stocks on the New York Stock Exchange that closed higher than yesterday minus the number that closed lower. That’s where the term advance/decline comes from.

When we add up that breadth number day after day, we “accumulate” the daily breadth numbers, giving us a cumulative advance/decline (A/D) line.

Most of the time, when the market goes up or down, the cumulative A/D line moves in lockstep.

Conceptually, the reason why this is an important metric is very straightforward as well. If only a few stocks are pulling the market up, then it only takes one of those stocks to fall hard to send the market spiraling.

So far, the market’s resisted doing that. But I’m seeing things that suggest we may be in for, if not a huge move down, then some decidedly more up-and-down action before long.

Have a look at these charts…

When the Line Starts to Split, Watch Out

I’ve shown charts in the past of how well the cumulative A/D pointed out major turns in the market:

Market Split Graph

It’s interesting that we saw a cumulative A/D line divergence in late 2015 before the big August correction in that year. I call it interesting because that was a “micro” case of the other big turns on the chart above, but it’s very illustrative.

That was a time when global financial markets, especially China, were struggling. China was down over 30% from its peak in just a matter of three to four months. And yet the U.S. markets continued to climb, fueled by the great run of the FANG (Facebook, Amazon, Netflix, and Google/Alphabet) stocks.

A look at the market breadth at the time shows that (unlike nowadays) those few stocks weren’t just leading the market – they made up almost all of the gains that summer.

The reckoning came in August when the S&P 500 dropped more than 15% in just five trading days. There was plenty of money to be made on big, bearish extremes.

Today’s FANG and Breadth Story

I’ve heard similar concerns recently – that the FANGMA stocks are all that are holding this market up. I’ve previously addressed these worries, but it’s worth a quick glance back before looking at what could be coming around the corner.

The short answer is that those six big tech stocks are leading the market. However, unlike August of 2015, lots of other stocks are following. So, breadth (number of stocks participating on the upside) is consistent with market returns and not as unbalanced as many have reported.

Let’s see how that plays out in our current cumulative A/D chart:

FANG and Breadth Graph

We see that breadth helped us form an expectation of more upside after the late March to early April retest of the February lows. And during this last push up into the last half of July, there is still broad market participation, even with Big Tech still leading the way.

I believe that right now there are more “yellow flags” signaling caution in the market than we’ve seen in many years. But the prudent course is to follow the trend and keep buying the pullbacks until breadth and other indicators tell us that the party is over.

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Source: Money Morning

Bear

8 Stocks to Sell Immediately

stocks to sell

Source: Shutterstock

Stocks are rolling over badly on Wednesday, reversing early session strength, as investors are spooked by headlines President Trump may increase the import tariffs on Chinese goods further as well as a hawkish statement from the Federal Reserve. Policymakers upgraded their assessment of the economy to “strong”, which raised fears of an accelerated rate hike pace.

From a gain of roughly 80 points, the Dow Jones Industrial Average is down 120 points as I write this. Narrowing breadth has been a problem for weeks, with the recent push to new highs by the Nasdaq Composite coming solely on the back of the mega-cap technology stocks.

A number of stocks are rolling over strongly now. Here are eight stocks to sell right now:

Stocks to Sell: MGM Resorts (MGM)

MGM Resorts (NYSE:MGM) shares are plummeting out of a multi-week trading range above their 50-day moving average, returning to lows seen in early July. The stock is falling in sympathy with losses for Caesars Entertainment (NASDAQ:CZR) after management issued a cautious outlook on its conference call. More downside looks likely now, with a break of support at $28 likely giving way to a fall back to early 2017 lows.

The company will next report results on Aug. 2, before the bell. Analysts are looking for earnings of 26-cents-per-share on revenues of $2.9 billion. When the company last reported on April 26, earnings of 29-cents-per-share missed estimates by a penny on a 3.8% rise in revenues.

Stocks to Sell: American States Water (AWR)

Stocks to Sell: American States Water (AWR)

American States Water (NYSE:AWR) shares are falling out of a multi-month uptrend pattern, closing in on their 50-day moving average, which was tested multiple times over the spring. Adding to the downside pressure, and impetus to sell, is a recent downgrade by Atwater Thornton analysts on valuation concerns.

The company will next report results on Aug. 6, after the close. Analysts are looking for earnings of 48-cents-per-share on revenues of $116 million. When the company last reported on May 7, earnings of 29-cents-per-share missed estimates by 6 cents on a 4.1% decline in revenues.

Stocks to Sell: Concho Resources (CXO)

Stocks to Sell: Concho Resources (CXO)

Concho Resources (NYSE:CXO) shares have broken down below their 200-day moving average, succumbing to downside pressure following a “death cross” of the 50-day moving average below the 200-day moving average back in late June. The downside acceleration comes despite an upgrade from Goldman analysts back on July 18.

The company will next report results on Aug. 1, after the close. Analysts are looking for earnings of 92-cents-per-share on revenues of $906.8 million. When the company last reported on May 1, earnings of $1-per-share beat estimates by 23 cents on a 54.7% rise in revenues.

Stocks to Sell: Wynn Resorts (WYNN)

Stocks to Sell: Wynn Resorts (WYNN)

Like MGM, Wynn Resorts (NASDAQ:WYNN) shares are being punished by the negative impact of negative guidance by competitor CZR. Shares have dropped out of a multi-week consolidation range that capped a 20% decline from the double-top high near $200. If support near $155 doesn’t hold, shares could fall a long way back to early 2017 levels near $85, which would be worth a decline of roughly 50% from here.

The company will next report results on Aug. 1, after the close. Analysts are looking for earnings of $2.03-per-share on revenues of $1.7 billion. When the company last reported on April 24, earnings of $2.30 beat estimates by 28 cents on a 20.5% rise in revenues.

Stocks to Sell: PepsiCo (PEP)

Stocks to Sell: Pepsico (PEP)

PepsiCo (NASDAQ:PEP) shares are testing their 20-day moving average, threatening to break the post-May uptrend that saw shares gain some 20% from their lows. The company reported solid results in early July, helped by the ongoing success of the sparkling water/no-calorie category. But lots of overhead resistance is in play now going back to May 2017. Profit taking should result in a 50% retracement, returning shares to the $106 level.

The company will next report results on Oct. 4, before the bell. Analysts are looking for earnings of $1.58-per-share on revenues of $16.4 billion. When the company last reported on July 10, earnings of $1.61-per-share beat estimates by 8 cents on a 2.4% rise in revenues.

Stocks to Sell: Oshkosh (OSK)

Stocks to Sell: Oshkosh (OSK)

Oshkosh (NYSE:OSK) shares are reversing sharply lower, breaking out of a three-month uptrend pattern and setting up a test of the late June low near $67.50. If that doesn’t hold, watch for a return to the lows seen in late 2016 and early 2017 near $65, which would be worth a loss of more than 8% from current levels as the tailwinds from a surge of military truck orders fades and profits are taken off the table.

The company will next report results on Oct. 30, before the bell. When the company last reported on July 31, earnings of $2.20-per-share beat estimates by 17 cents on a 6.8% rise in revenues.

Stocks to Sell: Dominion Energy (D)

Stocks to Sell: Dominion Energy (D)

Dominion Energy (NYSE:D) shares are lurching lower following earnings on Wednesday, breaking below their 20-day moving average and ending a very tight three-month uptrend pattern. This represents a failed breakout attempt above its 200-day moving average, which maintains the downtrend that has been in place all year.

The company reported results this morning before the bell. Earnings of 86-cents-per-share beat estimates by 7 cents on a 9.8% rise in revenues. Previously, the company reported results on April 27 when earnings of 86-cents-per-share beat estimates by 7 cents on a 9.8% rise in revenues.

Stocks to Sell: HanesBrands (HBI)

Stocks to Sell: HanesBrands (HBI)

HanesBrands (NYSE:HBI) shares are being slammed. Currently down nearly 19%, shares are returning to levels last seen in early June, after HBI reported disappointing quarterly results. Investors were spooked by word Target (NYSE:TGT) will not renew their contract for an exclusive line of C9 by Champion activewear apparel when the contract expires at the end of January 2020.

The company reported results this morning, with earnings of 45-cents-per-share missing estimates by a penny on a 4.2% rise in revenues. When the company last reported on May 1, earnings of 26-cents-per-share beat by 2 cents on a 6.6% 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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Source: Investor Place