It’s the heaviness of the selling volume in these big market capitalization stocks that stands out. These New York Stock Exchange listed names don’t get half the coverage in the financial media as some tech and social media favorites. It would be easy to miss how far down some former leaders have travelled.
Price chart analysis:
Chewy is an online retailer of mostly pet foods and, along with a lower-than-expected consumer sentiment metric this week, also suffered from the displeasure of CNBC “analyst” Jim Cramer, who this week bad-mouthed the company on the air. The daily price chart looks like this now:
From the early February peak of $52, Chewy has trended steadily lower to its current price of $20.15, a 59% drop in less than a year. Note the big red selling bars (below the price chart) in late August and in September. It’s probably safe to say that the stock is no longer a favorite of the on-line retailer investor.
In mid-July, JP Morgan “reiterated” its “neutral” rating of the stock with a price target of $45 to $41. Credit Suisse in late June downgraded Pfizer from “outperform” to “neutral” with a price target of $47 to $40.
The daily price chart is here:
It’s declined from $49 in January to $34 in September — for those who bought early in the year that’s a loss of 30%. Last week’s selling picked up as indicated by the big red volume bar beneath the price chart. The relative strength indicator (RSI) suggests a positive divergence to price movement.
Raytheon is a major aerospace and defense contractor with a market capitalization of $111.45 billion. The company is reported to have ended a billion-dollar agreement with Saudi Arabian individuals over concerns of their possible connections with Russian and Chinese operatives.
The price drop is from $106 in January to September’s $74 — a plunge of 30%. The 50-day moving average (the blue line) crossed below the 200-day moving average (the red line) as the stock gapped down in July.
Take a look at the Raytheon weekly price chart:
Note how — in the red-circled area — the price is now below the 200-week moving average, a significant factor likely to be picked up by Wall Street algorithms and the humans who write the code.
A sharp price chart analyst might have seen issues coming back in early June when the 50-day moving average crossed below the 200-day moving average.