Well, the round I was talking about Last Week Playing as expected.
These beat technology-related stocks like DocuSign Inc. (NASDAQ: DOCU) Can not escape the sale.
The crazy thing is that after DOCU dropped 25% in profits last Friday, it has not even made a new low in the last 30 days.
This is the type of volatility that is a trademark of bear markets. It’s not like what we saw in 2020, where we had a V-shaped recovery. This is an ongoing bear market that only gets crueler when you think it’s going to break free.
Some good news is that these volatile markets can be equally upwardly beneficial. We will see some wild moves higher. They just haven’t really happened yet.
This week I have two giants in their industries looking at them – The Kroger Co. (Symbol: KR) and Oracle Corp. (NYSE: ORCL).
One thing to watch out for: these two companies have only dropped 15% and 30% of their peaks as I write this. They have not yet seen the full power of this market environment.
All that could change this week with the gains.
Here’s what to expect…
Edge spaces Inventory No. 1: Oracle Corporation (NYSE: ORCL)
Earnings Announcement Date: Monday, after closing.
expectations: $ 1.38 earnings per share. Revenue of $ 11.6 billion.
Average Analyst Rating: to hold.
Oracle, the stock of enterprise technology, has fallen 30 percent from recent highs. It’s already in bear market territory.
In this market, it’s hard to be bullied in everything. This is especially true for technology stocks that rely on future growth. Even a giant like Oracle needs good economic conditions for that Investors Let there be an appetite for stocks.
Currently, this stock is on a downward trend. I do not expect that to change this week.
The declining trend of ORCL
What worries me is that the candlestick shaded by a blue chart … and fading.
These colors come from my Profit Radar, and they tell me where the stock is relative to the rest of the market. Blue is getting better, next will be leading (green), which is good news.
But every time a stock goes down in the improving segment, it is not a good sign.
So it worries me about the gains in this weak market.
We seem to get another weakness in the stock before things get worse.
Edge spaces Inventory No. 2: Kruger Company (NYSE: KR)
Earnings Announcement Date: Thursday, before opening.
expectations: $ 1.26 earnings per share. Revenue of $ 42.8 billion.
Average Analyst Rating: to hold.
From technology stocks to a consumer product …
Kruger is a company that no matter what happens, there will always be a foot traffic that buys groceries in its stores.
Need to eat to live. This is why these stocks tend to hold up better than most.
KR has dropped by only 15% from its recent highs as I write this.
I expect these types of stocks – consumer goods and safe haven assets – to take a heavy hit later on.
This is the round I was talking about. Technology stocks are still shrinking, but consumer products are starting to feel the pressure.
I think the best example of this is Target Corp. (Symbol: TGT).
Once a retail success story, Target has become an overnight nightmare over earnings in May, with new reports of reduced prices to move inventory.
It was part of that transition when these stable societies get hit.
Kruger may be next in line.
KR held – for now
KR gives me the same ominous sign as Oracle in its chart.
The stock is in the improving quarter, but the stock is in a lower direction.
This usually leads to strong selling pressure that is expected to get a jump in profits this week.
While I was looking for a short-term rise in the bear market, we can not ignore the overwhelming weakness that is now being revealed in so many stocks.
It’s hard to be bully about anything right now.
Watch for Ominous Signs in 2 Earnings Reports (ORCL & KR Analysis) Source link Watch for Ominous Signs in 2 Earnings Reports (ORCL & KR Analysis)