Buy-the-Dip Candidates: Jim Cramer Likes Energy Giant Chevron
Stocks ended solidly higher Monday as investors focused on the strength of the U.S. economic recovery and put aside concerns about the impact of higher inflation.
But stocks finished mixed Friday as Wall Street weighed signs of a surge in U.S. economic activity against a slide in high-risk assets such as Bitcoin. For the week, the Dow fell 0.5%, the S&P 500 slipped 0.4% and the Nasdaq rose 0.3%.
Here are several stocks that fell this past week and could present an opportunity to buy the dip.
1. Kohl's Corp | -13.08% Past Week | -6.37% 1 Month
Kohl's Corp (KSS) - Get Report posted stronger-than-expected first-quarter earnings, and boosted its full-year profit outlook, as the retailer's turnaround plans were supported by government stimulus and a post-pandemic surge in consumer spending.
Looking into the 2021 financial year, Kohl's said it sees net sales growing by a 'mid-to-high teens' percentage rate, with adjusted earnings in the region of $3.80 to $4.20 per share.
TheStreet Quant Ratings has rates Kohl's as a Hold with a rating score of C.
2. Cimarex Energy Company | -10.92% Past Week | +5.62% 1 Month
Cabot Oil & Gas (COG) - Get Report and Cimarex Energy (XEC) - Get Report on Monday agreed to merge in an all-stock deal valued at more than $17 billion.
Under terms of the deal, Cimarex shareholders will receive 4.0146 shares of Cabot for each share of Cimarex common stock they own.
TheStreet Quant Ratings has rates Cimarex as a Hold with a rating score of C.
3. Coinbase | -9.24% Past Week | -22.74% 1 Month
Shares of Coinbase (COIN) traded higher climbing nearly 3% after Goldman Sachs initiated coverage of the cryptocurrency exchange on Monday with a buy rating and a $306 price target.
In a note to clients, analyst Will Nance said that Coinbase is the best way to gain exposure to cryptocurrency ecosystems.
TheStreet Quant Ratings has no rating for Coinbase.
4. Quantumscape | -9.21% Past Week | -30.19% 1 Month
Shares of QuantumScape Corp. (QS) - Get Report dropped premarket this past week after the electric-vehicle-battery maker reported first-quarter results that missed estimates.
The San Jose, Calif., company reported a net loss of 20 cents a share, compared with a 6-cent loss in the year-earlier quarter. Analysts polled by FactSet expected a loss of 7 cents a share for the latest period.
TheStreet Quant Ratings has no rating for Quantumscape.
5. United States Steel | -7.74% Past Week | +2.57% 1 Month
United States Steel (X) - Get Report was upgraded to overweight from underweight with a $35 price target by Credit Suisse analysts on May 4 but has fallen after initially rising 8% after the upgrade.
TheStreet Quant Ratings rates U.S. Steel as a Hold with a rating score of C-.
6. Discovery | -7.59% Past Week | -18.54% 1 Month
Discovery Comm (DISCA) - Get Report announced plans to merge with AT&T's (T) - Get Report WarnerMedia unit in a $43 billion deal. At last check, shares of Discovery were up 0.59% at $30.04.
TheStreet Quant Ratings rates Discovery as a Hold with a rating score of C+.
7. Deere & Company | -6.31% Past Week | -4.49% 1 Month
Shares of Deere (DE) - Get Report rose after the company posted stronger-than-expected second-quarter earnings and raised its full-year profit forecast, due to a surge in demand for farming and construction equipment. Worldwide sales rose 30% to $12.06 billion.
TheStreet Quant Ratings rates Deere & Company as a Buy with a rating score of B+.
8. AT&T | -5.16% Past Week | -5.25% 1 Month
Shares of AT&T (T) - Get Report were higher after the company received upgrades from analysts at UBS and New Street that lauded the telecom giant’s decision to merge its WarnerMedia unit with Discovery.
UBS analyst John Hodulik lifted his rating on AT&T to buy and raised his one-year price target to $35 from $32.
TheStreet Quant Ratings rates AT&T as a Hold with a rating of C.
9. Chevron | -4.70% Past Week | +3.99% 1 Month
According to TheStreet's Jim Cramer, Chevron (CVX) - Get Report is one of the energy stocks to watch.
"I like Chevron and Pioneer Natural Resources (PXD) - Get Report," said Cramer during a recent Mad Money Lightning Round.
Over on Real Money, Ed Ponsi uses a combination of fundamental and technical factors to select a group of sectors that are positioned to benefit from the reopening, and then adds technical analysis as a filter to find the best opportunities within those sectors. Read more of what he has to say about those eight stocks -- including Chevron -- across five different sectors that are poised to profit.
TheStreet Quant Ratings rates Chevron as a Hold with a rating score of C.
10. Luminar Technologies | -4.16% Past Week | -4.42% 1 Month
Shares of Luminar Technologies (LAZR) - Get Report spiked this past month as the lidar-sensor maker said it would enter a collaboration with Airbus's EADSY flying-technology subsidiary, UpNext.
"Autonomous vehicles are fun to look at, but not to invest in," said Cramer.
TheStreet Quant Ratings has no rating for Luminar Technologies.
NOTE: Recently, Quantitative Analysis by TheStreet Quant Ratings objectively rated these stocks according to their risk-adjusted total return prospect over a 12-month investment horizon. Not based on the news on any given day, the rating may differ from Jim Cramer's view or that of this articles' author.
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