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Nearly Half Of S&P 500 Stocks Trade Below 50-Day Moving Average: Which One Is The Cheapest?

Published 14/02/2024, 17:49
Updated 14/02/2024, 19:10
© Reuters.  Nearly Half Of S&P 500 Stocks Trade Below 50-Day Moving Average: Which One Is The Cheapest?

Benzinga - by Piero Cingari, Benzinga Staff Writer.

As the S&P 500 index continues to hover near the 5,000-point threshold, not far from its all-time highs, the remarkable surge of over 20% since late October levels created a stark divide with many corporations failing to join the market rally.

As of mid-February, nearly half of S&P 500 stocks were trading below the 50-day moving average, which represents a widely recognized technical indicator employed by traders for evaluating the short to medium-term direction of a stock’s price movement.

This observation suggests a substantial portion of the index’s components remains ensnared by bearish sentiment, highlighting a poor market breadth.

Chart: Only 51% Of S&P 500 Stocks Is Trading Above 50-Day Moving Average

In total, there are 232 S&P 500 stocks currently trading below their 50-day moving averages, among which 202 have a market capitalization of less than $100 billion. The remaining 30 stocks belong to the echelons of mega-cap companies, although they constitute just one-third of that exclusive group.

The contrast becomes even more pronounced when considering that only five out of the top 30 companies in the index are trading below their 50-day moving average. This suggests the elite tier of the S&P 500 largely remained well shielded from bearish pressures.

Top 10 Cheapest S&P 500 Companies, According To 50-Day Moving Average

Charter Communications, Inc. (NASDAQ:CHTR), Archer-Daniels-Midland Company (NYSE:ADM), and MarketAxess Holdings Inc. (NASDAQ:MKTX) are the three companies that trade the most “at a discount” relative to this technical indicator with distances of 20%, 19%, and 17%, respectively, off the 50-day average. None of these three corporations have a market capitalization in excess of $50 billion.

A significant surprise comes in fourth place, as Tesla Inc. (NASDAQ:TSLA) is positioned there, about 16% off its 50-day average.

With a market capitalization of almost $590 billion, Tesla is one of the mega-cap outliers in the group of S&P 500 companies that trade below the 50-day average. Within this group, there is Boeing Co (NYSE:BA), now 11% away from its moving average.

Company Price vs. 50D Average Price Chg. % (YTD)
Charter Communications, Inc. -20.07% -25.59%
Archer-Daniels-Midland Company -19.38% -26.96%
MarketAxess Holdings Inc. -16.44% -25.02%
Tesla, Inc. -16.30% -25.12%
Air Products and Chemicals, Inc. (NYSE:APD) -16.07% -20.74%
Humana Inc. (NYSE:HUM) -15.81% -20.97%
Newmont Corporation (NYSE:NEM) -15.17% -23.05%
Healthpeak Properties, Inc. (NYSE:PEAK) -12.55% -15.45%
The Mosaic Company (NYSE:MOS) -12.51% -17.42%
EQT Corporation (NYSE:EQT) -12.47% -16.66%

Top 10 Richest S&P 500 Companies, According To 50-Day Moving Average Inverting the focus to stocks that have largely exceeded the 50-day moving average’s support, NVIDIA Corp. (NASDAQ:NVDA), Meta Platforms Inc. (NASDAQ:META), and Ely Lilly and Co (NYSE:LLY) lead the ranking, with 32%, 25%, and 21%, respectively, price premiums compared to the technical indicator.

Uber Technologies Inc. (NASDAQ:UBER) and Ralph Lauren Corp. (NYSE:RL) follow closely after with a 20% premium.

Company Price vs. 50D Average Price Chg. % (YTD)
NVIDIA Corporation 32.40% 49.35%
Meta Platforms, Inc. 24.70% 33.16%
Eli Lilly and Company 21.09% 30.65%
Uber Technologies, Inc. 20.59% 25.00%
Ralph Lauren Corporation 20.26% 20.76%
Catalent, Inc. (NYSE:CTLT) 18.79% 25.93%
Monolithic Power Systems, Inc. (NASDAQ:MPWR) 18.05% 16.14%
Walt Disney Co (NYSE:DIS) 17.51% 23.15%
Lam Research Corporation (NASDAQ:LRCX) 16.82% 18.02%
Palo Alto Networks, Inc. (NASDAQ:PANW) 16.02% 26.34%

Read Now: Nvidia’s Rally At Risk? Short Seller Jim Chanos Says ‘That’s Bad … If True’ After Analyst Spots Potential Red Flag

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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