Integrated energy stocks
After concluding our coverage of the biggest movers in the energy sector, let’s look now at the top losers from the integrated energy sector in the United States for the week that started November 20, 2017.
Cenovus Energy: The top integrated energy loser
Cenovus Energy (CVE) was the leading losing stock as of the middle of last week from the integrated energy sector. It fell from the previous week’s close of $10.16 to $9.71 on November 22, 2017, or by 4.4%. CVE fell significantly on the first two days of the holiday-shortened week and was trading just above its 200-day moving average at the mid-point of the week, which could act as a strong support. As of November 22, 2017, CVE closed at $9.71, whereas its 200-day moving average was $9.65.
Last week’s fall for CVE was part of its downtrend that started on November 13, 2017, after the company announced its plan to divest its EOR (enhanced oil recovery) operations in Saskatchewan for cash proceeds of $940 million. The sale was part of CVE’s strategy to optimize its portfolio and deleverage its balance sheet. Since the announcement of the Saskatchewan divestiture, CVE stock has fallen significantly by ~14% in eight trading sessions.
The other integrated energy laggard last week was Imperial Oil (IMO), which fell marginally. IMO has been on an uptrend since the first week of June 2017 and has risen 13% since then. As of the middle of last week, IMO was finding support at its 50-day moving average and consolidating for the last nine weeks. As of November 22, IMO closed at $31.23, whereas its 50-day moving average was $30.68.
The Vanguard Energy ETF (VDE) rose 0.57% as of the middle of last week. VDE has exposure to integrated heavyweights such as Exxon Mobil (XOM) and Chevron (CVX). In comparison, the SPDR S&P 500 ETF (SPY) rose 0.74% at the mid-point of last week.
Eli Lilly (LLY) reported 9% YoY (year-over-year) growth in its top line to ~$5.7 billion for 3Q17.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.