The Death Cross has called for some stocks. A death cross appears on a chart when the 50-day moving-average of a stock crosses below its 200 day moving-average. This can indicate that investors are losing confidence in a particular stock, or that its momentum is waning. Several stocks, from well-known names in food to lesser-known companies, are on the verge of drawing a deathcross. CNBC Pro identified six of them: PepsiCo is one. PepsiCo, the snack and soda maker, has been struggling this year. Its stock is down about 6% from 2023’s beginning. According to LSEG (formerly Refinitiv), analysts are optimistic about the stock. The average rating is buy, and the price target suggests that shares could rise by almost 20%. PepsiCo was initially interested in buying Hostess Brands – the company that makes Twinkies – but then changed its mind. J.M. Peanut butter and Jelly maker J.M. Smucker bought Hostess as part of a deal announced earlier this month. McCormick, which is known for its spices, seasonings and condiments, has seen a drop of nearly 11% in sales year-to-date. According to LSEG, the average analyst’s rating is hold, and their price target indicates a potential upside of almost 17%. Alejandro Zamacona of HSBC is one of these analysts. He initiated research coverage for McCormick earlier this month with a “hold” rating. He noted that the company was a leader in the world, but said the stock was “priced too high.” In a client note, he noted that cooking ingredients and condiments are a small category in comparison to other packaged foods. “Despite its strong growth profile in M & A, we do not see any reason to pay a higher price than the peers.” BlackRock has also made a death-cross and is down over 9% for the year. According to LSEG, the average analyst gives the stock a buy and the consensus price goal is 26% higher. In a client note, Bank of America’s Craig Siegenthaler stated that the Federal Reserve meeting held last week and decided to maintain interest rates at their current level could be good for BlackRock in 2019. The company’s themes include the move to money markets, private credit and fixed income that do better when rates are higher. Bank of America stated that they were “bullish” on BLK 2024 due to the prospect of large bond reallocations after the Fed’s pause. CNBC’s Michael Bloom, Fred Imbert and this report were contributed by CNBC.
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