These stocks, including Lululemon, are breaking down even as the S&P approaches 5,000
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As the S & P 500 notches all-time highs, some big names like Lululemon Athletica and Comerica are among more than a dozen stocks trading below their 50-day moving averages. Broad market gains are being led by a shrinking number of stocks. While the S & P 500 has gained more than 4.8% so far this year, the share of stocks in the index above their 50-day moving average has fallen to about 60%, according to Bespoke Investment Group. A stock’s 50-day moving average is the mean of its 50 most recent closing prices at any given point. The metric is often used to understand the short-term performance of an individual stock, but looking at the total number of stocks trading above or below their 50-day moving averages can also give more signs about the health of the broader market, and whether or not a pullback for stocks could be ahead —especially as the S & P 500 crossed above the key 5,000 level on Thursday. We searched the index for stocks that fell below their 50-day moving averages in the past five days and that remain below that level, according to FactSet. Some of the stocks, particularly the financial names, are trading just below those levels, meaning that any upside to those names would bring them back above. Below is the full list of stocks that fit this criteria and what analysts think about them. Shares of Lululemon Athletica have recently experienced a pullback. The stock last closed at $472.98, while its 50-day moving average is $480.56. Lululemon has grown at a slower rate than it has in the past amid competition from companies such as legacy sports apparel retailer Nike and newly popular retailer On Running . Lululemon announced on Feb. 1 that it’s aiming to double its men’s business , particularly through increasing its footwear offerings. The company’s first casual men’s sneaker will debut next week . The company also hopes to grow revenue to $12.5 billion by 2026. Shares gained about 3.3% on Thursday, taking back some of its losses this year. Analysts, which rate the stock overweight, have a consensus price target of $511.02, implying shares could gain roughly 8%. Comerica is another name trading below its 50-day moving average of $52.68 per share. The Dallas-based regional bank last closed at $51.07 per share. Shares have struggled as the bank’s earnings and revenue have fallen. The stock has lost more than 8% since the start of the new year and more than 32% over the past 12 months. On Jan. 19, Comerica had reported fourth-quarter adjusted earnings fell to $1.46 per share, and it forecast that net interest income would decline 11% this year. The bank also warned loan demand was weakening. Following the bank’s earnings release, Raymond James downgraded shares to market perform from outperform on Jan. 22, citing a difficult near-term outlook and mounting expenses making the stock trade at what appears to be a fair value. The firm had removed its $62 price target for the stock. Analysts’ consensus price target of $60.15 suggests 17.8% potential upside for shares, according to FactSet. International Paper is another name trading below its 50-day moving average of $36.41. While shares have lost more than 9% over the past year, analysts’ consensus price target of $37.77 indicates nearly 8.3% potential upside for the stock, per FactSet. Shares last closed 3% higher at $34.89. The company — which has started to benefit from rising e-commerce demand and inventory rebuilding — missed fourth-quarter revenue estimates on Feb. 1, posting $4.60 billion in revenue for the period while analysts surveyed by FactSet had called for $4.67 billion. Following the slightly worse-than-expected results, Wells Fargo kept its equal weight rating but cut its price target by $4 to $35 on the company, citing uneven margin recovery that could keep shares “rangebound” in the near term. Other stocks trading below their 50-day moving average include manufacturer Honeywell and transportation company C.H. Robinson Worldwide .
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