Shares just closed out their worst first quarter ever.
The S&P 500 fell 20% in the 1st three months of the year, breaking the past initially-quarter document set in 1938, as the coronavirus pandemic worsened.
There had been a couple of market place vibrant spots, though. Shares including Citrix, Regeneron, Netflix, Gilead, Nvidia and Amazon ended the quarter greater.
Craig Johnson, chief sector technician at Piper Sandler, suggests 1 executing inventory is environment up for a tumble.
“J.M. Smucker — this is a inventory to me that looks like it must be bought. It truly is up 6% year to day, but … it can be been a much better relative performer than an complete performer, to be obvious,” Johnson instructed CNBC’s “Buying and selling Nation” on Tuesday. “This is a stock that we really should be having some gains.”
John Petrides, portfolio manager at Tocqueville Asset Management, agrees with Johnson’s J.M. Smucker call.
“Buyer staples has been a relative outperformer, but Smuckers for a pretty lengthy time has not been equipped to develop organically. I assume investors are enjoying the operate on the grocery store, and the simple fact that it has an previously mentioned normal generate, and that is supporting the valuation. But organically and structurally, I consider the enterprise has difficulties that it nevertheless has to perform as a result of, so I would not fork out up for this inventory,” he stated during the exact section.
Petrides also notes that Netflix may be facing downside tension just after a 16% run this yr. He says superior valuations and dependency on subscriber development and raising information expenditures could continue to keep a verify on the inventory.
There is just one inventory Johnson claims has the skill to retain on climbing.
“I assume the opportunities in other names, this kind of as in the technological innovation sector, wherever you have Nvidia. When you search at that chart, this is a stock that is been significantly stronger. It’s corrected correct back again to the rising 200-working day shifting normal, good guidance at about $200,” stated Johnson.
Johnson says Nvidia could see moves to the large $300s. That would surpass its February record superior of $316.32.