The stock market continues to stabilize after the prolonged damage wrought by coronavirus. As the effects of these wounds continue to ripple out into various industries, organizations and markets are just beginning to right themselves, with many not yet sure of the next course of action.
With the New York Stock Exchange hovering just below bear market down at 18.5% YTD, the domestic market at large isn’t showing much of a bounce back. The technology sector, however, is holding strong at nearly 8% increase to date, with many companies far and wide exceeding that number.
However, in such a choppy market, there are no guaranteed winners or losers – yet.
Unusual Movers by Price Change
Best Buy Co., Inc closed down to $76.92 Saturday on volume approaching 4.7 million. Though the price drop hovers around 2% down in keeping with their minor downticks this year, they are down almost 12% YTD. With prices sitting stagnant as of late, Best Buy Co., Inc is rated Neutral.
Best Buy has made the best of a bad situation. It reports that the last six weeks of Q1 maintained 81% of last year’s sales, despite closing stores to customers. However, company also furloughed 51% of its employees and has withdrawn large amounts of credit, restricted share buybacks, and abstained providing earnings guidance. This mixed bag of news brings this stock to a hold.
Facebook, Inc FB closed up 11.4% on Saturday to $234.91 a share on volume approaching 34 million. The stock is up 13% from the 22-day average of $207.44 and 14% for the year, bouncing back hard from their 16 March down of $146.01.
Despite their many scandals, Facebook continues to ride high on the back of stay at home orders. In addition to their increased traffic, Facebook has also been taking responsible action to improve their image, including the introduction of Shops. Shops is a collaboration with eCommerce sites, such as Shopify, to allow businesses to sell directly through Facebook and Instagram. As high share prices rise further, Facebook is rated Attractive.
L Brands, Inc LB closed up almost 39% on Saturday to $15.08 a share on volume over 12 million. This stock has been increasing for the past few weeks, with Saturday’s numbers coming in almost 27% higher than the 22-day price average of $11.89 a share. With Saturday close bringing their YTD down to a (comparatively) mere 15.7%, L Brands is making steady gains on their 2020 losses.
While L Brands announced in February that troubled lingerie brand Victoria’s Secret is to be sold, the sale is pending. When it goes through, L Brands will be constituted solely of Bath and Body Works, which has held up reasonably well (especially compared to the sinking ship that is Victoria’s Secret).
Synopsys, Inc SNPS closed at $171.11 on Saturday, up 7.8% for the day and nearly 30% for the year. Saturday’s close saw Synopsys continue its upward trend, coming in over 8% higher than its 22-day price average. Due to the current high demand and upward trend, Synopsis, Inc is rated Neutral.
Manufacturing companies are the foundation on which many other industries are run. Synopsys, Inc operates similarly, as the infrastructure on which code and chip designs run. They provide the programs, simulators, and related technology to enable other companies to create everyday applications. With so much demand, their stocks have been riding high – so high they are a hold.
Unusual Movers by Volume Gain
Becton, Dickinson, and Company closed down 7.36% to $239.25 a share. Their YTD downs come to 12%. However, it’s their volume that’s impressive this week, as the market has clearly taken an interest. Saturday closed on volume over 11.7 million, up an astronomical 256% from the ten-day average of 3.3 million shares traded.
Becton, Dickinson, and Company is a medical device and technology giant and a frequent inventor and investor in tools hospitals use to treat the sick. Although they would seem an important player in the coronavirus fight, hospitals and their medical device suppliers have faced economic strain. Additionally, BD saw the CDC remove one of their coronavirus tests from the market, bumping share prices lower. With small gains to be had and PR damage done, Becton is rated Neutral.
Harley Davidson, Inc HOG closed up 24% on Saturday to $24.38 a share, making small gains on the 33% YTD down. As world markets relax restrictions and drivers hit the road again, the market has begun to stir on Harley Davidson, as Saturday closed on volume of 9.8 million, up over double from their 10-day, 4.76 million share average.
Harley has had a rough year, as coronavirus forced them to shut down production and bikers were urged off the roads early in the pandemic response. Upon news that production will reopen, stock shares shot up, and prices are likely to increase quickly. Harley Davidson is thus rated Neutral.
Norwegian Cruise Line Holdings Ltd 1` NCLH closed up over 27% to $13.90 a share on Saturday, bringing their YTD down to 76.2%. They closed on volume of 65.1 million, up 4.4% from the 10-day volume average of 62.3 million. With the appearances of a comeback, Norwegian Cruise Line Holdings is rated as Top Short.
Norwegian Cruise Line Holdings is a constant presence on these lists, and never for good reasons. Their sector is uniquely vulnerable to coronavirus concerns, and even after outbreaks of infected passengers and ignored risks fade away, the stocks continue to suffer. Norwegian received a significant bump after Credit Suisse assigned an Overperform rating, but that jump is likely to disappear. Investors should avoid, sell, and look to short.
Unusual Movers by Volume Drop
Expedia Group, Inc closed up almost 17% on Saturday to $77.95 per share. This is small gains on their YTD down of 28%, however. Their volume dropped over the weekend as well, down to 3.5 million from their 10-day 5.5 million average.
Some companies have responded to the crisis through adaptation or selling assets, but others don’t have the option. Expedia is in the travel business, and right now that’s one of the worst to be in. Low stock price and a dropped earnings estimate may not show signs of collapse, but they aren’t encouraging either. Expedia Group, Inc is therefore rated Neutral.
Kohl’s Corporation KSS ticked down 0.3% on Saturday to $17.48 a share. Their YTD downs fall beneath 64%. The market appears to have lost interest in the past week, with Saturday closing on volume over 8.5 million compared to the ten-day average of 11.7 million shares. With the market bailing for the week and store reopenings met with a tick downward, Kohl’s Corporation is rated Unattractive.
As almost exclusively a brick and mortar clothing department store, Kohl’s is in the crosshairs of the coronavirus crisis. Quarterly revenue has fallen by a jaw-dropping 40% since last year, with the board slashing expenditures and suspending share dividends. Further drops are to be expected, making the stock unattractive – at least in the short term.
Under Armour, Inc UAA closed up 8% to $8.34 a share on Saturday, hopefully marking the end of a long, dark tunnel for Under Armour. The stock is down over 61% YTD. Saturday’s numbers accompanied a 37% volume drop, down to 9.2 million stocks compared to the ten-day average of 14.6 million. The market is losing interest, and we agree: Under Armour is rated Unattractive.
When social distancing orders came into effect, demand for sports gear dropped off a cliff, and Under Armour was swept along for the ride. Year on year revenue has dropped by 23%, and they’ve been forced to sell $400 million in senior notes to shore up liquidity. Until the pandemic recedes, Under Armour remains an unattractive buy.