Yearly Losses Exceed 60% For Nordstrom And Macy’s As Volume Spikes

Investing

Countries are open, the world is alive, and the stock market is seeing some much-needed gains in key sectors for the first time since the pandemic market tanked. Pharmaceuticals continue to climb and where technology isn’t gaining, it’s mostly holding steady. In addition, several stocks which haven’t grabbed headlines have seen significant shifts, often for the better. Not all news is good, however: real estate and clothing retailers are still struggling with up triple bear market downs eating away at their profits – and investors’ confidence. Our Artificial Intelligence (AI) software has examined the stocks for the week and determined some of the most significant movers and shakers for the week ending Friday, May 29.  

Unusual Movers by Price Change 

Dollar Tree, Inc. closed up over 20.5% on Friday to $97.87 a share, in keeping with its 21.5% increase from their 22-day price average of $80.52. They have maintained steady market interest in recent weeks, with Saturday closing just under 4 million shares. The stock is up 4% YTD. Our AI rating for Dollar Tree, Inc is Neutral.  

Dollar Tree is replaying many of the patterns we saw during the Great Recession. As consumers are increasingly squeezed economically, they turn to budget shops to obtain necessities. Therefore, any stores that specialize in that market benefit from the recession in the long-term. With their share pricing closing up 20.5% in a day, Dollar Tree is a solid hold.  

 Alexion Pharmaceuticals, Inc. closed up $119.90 Friday, a 19% gain for the day and 11% for the year. Friday’s numbers continued the gradual upward trend throughout May, coming in 16% up from the 22-day average of $103.41. Our AI has rated Alexion Pharmaceuticals, Inc as Attractive.  

Pharmaceuticals broadly divide into two categories: researching common conditions and developing drugs for rare conditions. Alexion Pharmaceuticals specializes in the latter and has reaped the gains after releasing Soliris. Despite a recent lawsuit with Amgen over patent control dragging down share prices, a nearing resolution has seen prices leap once more. Alexion remains an attractive buy.  

 Crown Castle International Corp. closed up 14% to $172.16 on Friday on volume approaching 3.3 million. They too have been making steady improvements recently, with Friday’s close seeing just under 10% gains from the 22-day, $157.11 per share average. Crown Castle International Corp is up over 22% for the year. Our AI has rated this stock as Attractive.  

Real estate investment trusts can be tricky beasts, but Crown Castle is in its own category as a holder of tens of thousands of cell towers and optic fiber lines. As the largest provider of communications infrastructure in the US, they have navigated crisis conditions exceptionally well – and with their investment in 5G driving their P/E ratio to a shocking 95.14, they have a strong likelihood of growth.  

 Waste Management, Inc. closed up almost 8% to $106.75 a share on Friday. They have been closing the gap on their coronavirus pandemic market down, with the stock sitting just below 6% down YTD as of Friday. Their welcome price jump is a 6.8% increase from its $99.99 22-day average. As an essential business with guaranteed gains to be had, our AI has rated this stock Top Buy.  

Waste Management appears to be a story of a thoroughly solid company in a vital role that simply hasn’t had enough press. Sometimes the market knows best, sometimes it misreads news, and sometimes it doesn’t notice a reality. With Waste Management lagging the market while maintaining solid gains, it appears to an opportunity that investors won’t want to miss.  

 Archer-Daniels-Midland Company closed up almost 12% Friday to $39.31 a share. This stock has been making very slow gains throughout May, with Friday’s numbers barely 10% more than the 22-day $35.64 average. These incremental increases have brought the stock to a comparatively paltry 14% down for the year. With nowhere to go but up, this stock is rated Top Buy by our AI. 

Archer-Daniels-Midland is a vast global food processing company, turning grains and oilseeds into the raw materials for food, fuel, and other equipment. They’ve been struck by the effects of coronavirus like every other company, but with such a wide reach and strong fundamentals, the impact is greatly dampened. With strong gains reported this past week, this stock remains a strong investment.  

 The Cooper Companies, Inc. closed up 10% Friday to $316.98 a share on volume just under half a million. With an impressive $20 gain made over the 22-day average of $297.87, The Cooper Companies is making strong headway on their pandemic market downs. The stock is down 1.3% YTD, and that gap is closing fast, making our AI’s recommendation on this stock Attractive.  

Cooper Companies holds a surprising constellation of businesses in the area of medicine, mostly centered around contact lenses and women’s healthcare, such as fertility and childbirth. The first is largely unaffected by circumstances, and the other is resistant to circumstances on a lagging time frame. As the bear market has rampaged, Cooper Companies has marched into our Attractive buys.  

Unusual Movers by Volume 

Regeneron Pharmaceuticals, Inc. closed up 9% Friday to $612.81 per share. The market is stirring, too: Friday saw a closing volume of 6.7 million, up an astounding 252% from its 22-day volume average of 1.9 million. However, with such high stock prices, our AI has rated Regenerate Pharmaceuticals as Neutral.  

Regeneron’s position has been supported by the federal government’s agreement to pay for 80% of research and manufacturing costs for Covid-19 treatments. Often on the front lines in treating more vicious targets, from RA to Ebola, Regeneron’s stock has risen 63% for the year. This past week’s bump comes on news of a significant stock buyback, indicative of company success. Investors, hold fast.  

Macy’s, Inc. closed up at $6.36 per share Friday, a welcome 18% increase for the day as they are down 61% for the year. It’s their volume that has everyone buzzing, however, with Friday closing over 52 million shares, 9 million more than their 22-day volume average. With bad news on the horizon and a long haul ahead, our AI has rated them Unattractive.  

Macy’s saw the largest share price increase by percentage in their history, but wise investors won’t be swayed. The rise came on news they were offering $1.1 billion in bonds, backed by real estate holdings. However, the underlying difficulties for brick and mortar retailers rage on, and while the company may recover, the stock is bound to have at least one more crash in the short term.  

 Nordstrom, Inc. ticked up a mere .88% to $16.13 a share Friday, still stuck at a 60.6% triple bear market down YTD. They’ve had a massive leap in market interest in the past three weeks: Friday closed on volume 24.6 million. This is up an impressive 131% from their 10-day volume average of 10.6 million – and 229% over the 22-day average of 7.5 million. Our AI has rated Nordstrom, Inc as Unattractive.  

Nordstrom is an interesting mixed bag as a retailer. On one hand, they face the same enormous struggles and losses as their industry. On the other, they’ve made significant moves to mitigate the damage from the beginning, resulting in some of their losses. Overall, though, the recent recovery looks to be a small blip, and they have a long way to go before they’re out of the woods.

Norwegian Cruise Line Holdings Ltd. closed up 11.6% Friday, making a minor dent in their triple bear market down of 73% YTD. However, it’s not their prices that are impressive, but their volume, as Norwegian experienced another uptick in market interest. Friday saw a closing volume approaching 77.5 million vs its 22-day volume of 72.8 million. Our AI has rated this stock a Top Short for the week.  

Despite seeing an unexpected bump, Norwegian continues to feature as a troubled company. While there’s an argument to be made that the industry hasn’t changed, it’s only in the sense that all news is now bad news. Norwegian announced it has closed a $400 million sale in senior notes, and Canada closed off its borders to all cruise ships. This makes Norwegian’s bump more attractive if you’re looking to short the company’s shares.

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