Investing

Dish Network, eBay and Other Stocks With Recent Death Crosses

Trey Thoelcke

Golden crosses and death crosses are common signals in technical analysis and refer to the relationship between short-term and long-term moving averages. The golden cross typically is seen as a bullish sign, perhaps a stock that has broken out or is about to. The death cross, on the other hand, can be a bearish sign, perhaps warning investors to get out of the way or signaling that it may be time short the stock.

Here are five S&P 500 stocks that recently saw their 50-day moving average cross below the 200-day average, a death cross.

Church & Dwight Co. Inc. (NYSE: CHD) saw its death cross last week, but so far the gap between the averages is less than 1% of the share price. This maker of household and personal care products recently posted better than expected quarterly earnings. Yet, shares have retreated more than 5% in the past month, while the S&P 500 has gained more than 3%. Only three out of 21 analysts surveyed recommend buying shares.

Colgate-Palmolive Co.’s (NYSE: CL) long-term moving average also crossed above the short-term one last week, reversing the golden cross seen back in March. This consumer goods company also posted an earnings beat, and its shares are less than 2% lower than a month ago. They are still up more than 13% year to date. Here too, analysts on average recommend holding shares.

The Dish Network Corp. (NASDAQ: DISH) moving averages have been entwined this month, after about a $5 gap (14% or so of the share price) seen back in the summer. Earlier this month, Dish Network reported better than expected earnings. Shares have been both down more than 2% and up more than 6% in the past month. The consensus recommendation is to hold shares and has been for months.

eBay Inc. (NASDAQ: EBAY) saw a death cross last week as well. The long-term average dropped below the other early March. A third-quarter earnings beat was accompanied by downbeat guidance, and shares are now down more than 11% in the past 30 days, but still almost 21% higher year to date. Most of the analysts surveyed recommend holding shares.

Travelers Companies Inc.’s (NYSE: TRV) death cross happened earlier this month, and the difference in the two averages is up to about $2.80, or around 2% of the share price, so far. The stock has been a Dow Jones industrial average laggard. Its shares are down more than 4% in the past month but still more 15% year to date. The consensus recommendation is to hold the shares.