Are You Prepared for a Death Cross? Stocks to Watch
At Extreme Investor Network, we pride ourselves on keeping our readers informed and ahead of the game when it comes to investing. Today, we want to draw your attention to a concerning chart pattern that has been making its way into the market – the “death cross.”
A death cross occurs when a stock’s 50-day moving average falls below its 200-day average, signaling a potential loss of momentum and further decline in the stock price. Our team has screened FactSet data and identified five stocks that are at risk of forming a death cross, including household names like Clorox, Baxter International, Illinois Tool Works, and Abbott Laboratories.
Clorox, for example, has seen its shares decline more than 10% in 2024 after missing revenue estimates in April. The company attributed this miss to lower volumes caused by a cyberattack in late 2023. With concerns about softer consumer spending and private-label competition on the horizon, some analysts are predicting further downside for Clorox.
Baxter International, a medical equipment maker, is also approaching a death cross after a 14% pullback in 2024. Analysts are growing impatient with the company’s revenue growth prospects following the acquisition of Hillrom in 2021, leading to a downgrade by TD Cowen earlier this month.
But it’s not just these two companies that investors should keep an eye on. Illinois Tool Works, which recently experienced a golden cross chart pattern, is now on the verge of a death cross only five months later. Similarly, Abbott Laboratories has seen a nearly 8% pullback in 2024 following a Class 1 recall on its HeartMate devices by the FDA.
As you navigate the stock market, it’s crucial to stay informed about evolving chart patterns like the death cross and understand the potential implications for your investments. At Extreme Investor Network, we’re committed to providing you with the latest insights and analysis to help you make more informed decisions as an investor. Stay tuned for more updates on these stocks and other market trends.