What Worst Dow Stocks in May Could Bounce Back in June
the Dow Jones Industrial Average ended May almost 2% more, but not all of its components joined the rally.
“Visa sets me apart,” said Craig Johnson, chief market technician at Piper Sandler. “Here is a stock that obviously had a tough May. It has been corrected to return to the long-term uptrend support line dating back to March 2020. And from our perspective, we think those pullbacks should be purchased. ”
Visa fell nearly 3% in May. It is down 4% from its April high and has added just 4% this year.
“I would also just like to note from a fundamental point of view that, with everyone coming out and coming back, it’s clear that the deals are going to be in place,” Johnson told CNBC. “Trading nation“Friday.” And we’ve also seen comments that … two-thirds of people are currently spending the same amount or more than they were spending in 2019 right now, so that should be a good setup. “
Johnson sees a good lead ahead for Visa to recover and even surpass his all-time April record.
“We think from now on shares will hit around $ 285, so around 25% from here, so we would be a Visa buyer from June,” Johnson said.
Visa closed Friday at $ 227.30 per share.
Nancy Tengler, chief investment officer at Laffer Tengler Investments, highlighted Disney as the Dow Jones which she believes could rebound in June.
“You don’t just have ‘Cruella‘ coming out today and online streaming is also available today, for an extra $ 30, but you have sporting events restarting, then there are the parks and in mid-June California s’ opens to non-California residents, ”Tengler said in Friday’s interview.
Disney has underperformed this year, falling more than 1%. It is down 12% from its March record.
“We love the story, we think it hasn’t done anything for the year, but with the resurgence of the reopening, we think it’s a title that’s underrated,” Tengler said.
Disclosure: Laffer Tengler Investments and Tengler own DIS.