Technology Stock of the Week: Intel
Intel (INTC) shares mounted a comeback last week, despite poor operating results and outlook from the company.
Investors have chosen to focus on the continued turnaround potential for the company as Intel has spent the last two years shifting its business focus to bolster semiconductor manufacturing in the United States.
Last week’s earning results felt more like a kitchen sink quarter as the company missed on a number of key measurements and guided investors to another quarter of lackluster results.
Within that outlook laid the company’s aggressive cost-cutting plans that management has enacted as part of the long-term recover initiative.
Investors have decided to focus on the long-term view as a result, bidding the stock 8% higher late in the week.
Intel shares are far from having an easy road higher. Investors need to maintain a watch on the stock’s 50-day trendline – which just turned bullish – along with support at the $20 level. The ability to maintain both key levels will attract more technical and value investors into the market for Intel shares.
Growth Stock of the Week: General Motors
General Motors (GM) shares continue to trend higher after the company’s earnings results on October 22.
The company posted better-than-expected earnings results along with positive sales results from China as GM’s electric and hybrid business continues to outpace expectations in that country.
GM’s full EV and hybrid sales in China surpassed sales of internal combustion engine vehicles for the first time even in China.
The company also announced last week that it has now sold more than 300,000 electric vehicles in the U.S since 2016.
The news sparked a rally that took shares as high as $45.50 before profit-takers moved in to sell the strength. That selling has landed GM shares just above the $50 price target, where the market should see significant strength.
Shares of GM are trading above all key technical trendlines, signaling strong momentum for the stock.
GM shares have a long-term target of $60.
Stock Under $10 of the Week: Kinross Gold
Many investors may think that the “Bullish Gold” trade is set to end after the election this week, but that’s wrong.
Central banks around the world continue to buy gold as pressures come to bear on the dollar.
The Fed’s interest rate trajectory is helping to drive gold prices higher.
And an improvement in the economy will only add to the industrial demand for Gold.
These drivers suggest that Gold’s long-term bull market will continue along with the same trend for gold miners.
Kinross Gold (KGC) shares recently shifted out of the sub-$10 price range, a move that often attracts more long-term buyers to any stock.
The stock spent last week enduring some selling pressure that dipped shares back below $10. Support from its bullish 50-day moving average is likely to have the shares jumping back above $10 with a target of $12.
Income Stock of the Week: Keycorp
Regional Banks like Keycorp (KEY) are in a position to benefit from the long-term decline in interest rates.
Regional banks have been hammered over the last three years as high interest rates and low expectations for the economy have slowed loan business.
Banks like Keycorp generate the majority of their revenue from loan activity such as mortgage, small business and commercial real estate business.
With interest rates heading lower and the economic outlook improving, Keycorp shares have turned long-term bullish bullish.
With their 4.7% yield, the shares become attractive for income and growth & income investors.
Shares are currently trading below $18 with a target price of $22.50 as the stock is trading in both a long- and intermediate-term bull market trend.
Bearish Stock of the Week: Ford Motors
Shares of Ford (F) have been in a slump that looks to continue as the stock heads towards the $10 price.
While the company did post better than expected earnings last week, there was a notable absence of positive forward-looking guidance. The company’s forecasted earnings before income taxes for the next quarter came in at $10 billion, the bottom of analysts range.
Ford Saw growth in the company’s auto electronics and intelligence paid software revenue, which grew by 30%.
Auto sales grew 8%, lighter than 12% a year ago. The company also performed well in the hybrid auto division as a number of automakers are now directing efforts towards this market. Ford also announced that the company was halting production of the F-150 Lightening vehicles for weeks at the Dearborn facility.
Shares responded to the earnings report with a sharp decline below $11. The stock also snapped through support at its 50-day moving average, which is trading in a bearish pattern.
Investors should target some support at $10 as a result of the psychological effect of that price.
However, Ford shares remain in an intermediate-term bearish trend with a target of $9.
— Chris Johnson
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Source: Money Morning