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A few stocks could ride the market’s momentum and see a breakout ahead, according to a bullish price chart pattern that is closely watched by technical analysts. McDonald’s and Cisco Systems are among the companies that have recently formed the “golden cross” pattern , a phenomenon that occurs when an asset’s 50-day moving average rises above an upwardly sloping 200-day moving average. These stocks could be poised for a strong run as the three major U.S. indexes also head toward a monthly gain. The 30-stock Dow is up 1.4% in September, and the S & P 500 and Nasdaq Composite are higher by nearly 1% and 1.1%, respectively. Take a look below at the stocks we found that have formed golden cross patterns, according to FactSet data. McDonald’s McDonald’s made the screen. Shares are up nearly 1.3% this year and have rallied more than 17.5% this quarter, after McDonald’s announced in mid-September that it will extend its $5 value meal into December in most U.S. markets. On Tuesday, the stock was on track to notch an all-time high and its first record close since Jan. 19, when it closed at $300.53. Goldman Sachs on Monday reiterated its neutral rating but lifted its price target on McDonald’s shares by $41 to $325, which implies 8.7% potential upside. The firm noted that McDonald’s sales saw continued upward momentum following the launch of its $5 meal deal after a prolonged period of deceleration. “We now believe higher valuation premium relative to S & P and peers is warranted given its clear scale advantage that will allow it to out-comp peers and move into an even stronger position within the fast food industry,” analyst Christine Cho said in a note. Cisco Systems Cisco Systems shares are up about 3.8% this year and made the cut. The stock has jumped more than 10% this quarter after the company posted second-quarter results that beat analysts’ estimates. It also announced in August that it is cutting 7% of its workforce. New Street Research’s Pierre Ferragu is bullish on the company’s subscription-based and software products to drive margin expansion moving forward as customer destocking slows down. His price target of $57 implies upside of 9.2% from Monday’s close. CF Industries The fertilizer manufacturer has added 6.7% this year and nearly 14.5% this quarter. Analysts polled by FactSet have an average price target of $83.79, which forecasts less than 1% upside for shares according to Monday’s close. However, Wells Fargo on Tuesday reiterated its overweight rating on CF Industries, citing its “significant natural gas advantage and share buybacks.” The stock is also trading at a discount and could see further upside if it moves forward with its clean ammonia projects, Wells Fargo said. The firm moved its rating to overweight from neutral and lifted its 12-month price target by $4 to $92, suggesting shares could gain roughly 10.5%.
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https://www.cnbc.com/2024/09/24/three-stocks-including-mcdonalds-have-formed-the-bullish-golden-cross-stock-pattern-during-market-breakout.html
