CrowdThnk Blog

Large positioning change

10 Largest Positioning Changes in the Stock Market - June 2018 Update

Recent events from Trump-Kim Singapore summit to Tariff War between US and China have caused significant positioning shift. Knowing those large positioning changes is very important in identifying the next trading opportunity, as some might be fundamental-driven and thus lasting longer while others might be tactical-driven and therefore short-lived. According to CrowdThnk’s consensus positioning measure, here are the 10 stocks that have seen the largest positioning since May 2018:

 

Top 5 Stocks with Increasing Positioning

1. Tesla (TSLA)   Very Underweight -> Very Overweight

After several months of underperformance due to negative news regarding to production, sales and labor cut, Tesla's stock price has been rallying strongly during the past month, pushing its positioning to Very Overweight based on CrowdThnk’s measure. Even though there is no evidence of a significant short squeeze on Tesla’s stock yet, Musk has been buying his company’s shares hoping to reinforce market confidence. See TSLA’s future price move forecast.

 

2. Time Warner (TWX)  Very Underweight -> Very Overweight

As the AT&T acquisition deal became more and more likely during the past month and eventually won its legal battle to buy Time Warner, its stock price has been rising significantly and positioning has gone from Very Underweight to Very Overweight. Some of the big hedge funds have been betting on the deal going through and they will be the biggest winners. See TWX’s future price move forecast.

 

3. General Motors (GM)  Slightly Underweight -> Very Overweight

The investment from SoftBank Vision Fund for autonomous vehicles has boosted General Motors’ stock price for nearly 15% over a few weeks, pushing its market positioning from Slightly Underweight to Very Overweight, according to CrowdThnk. As GM is still massively undervalued with great growth potential, analysts have started upgrading GM stock to a buying rating. See GM’s future price move forecast.

 

4. Pfizer (PFE)  Slightly Underweight -> Very Overweight

Pfizer has several newer drugs on the market that could generate big revenue over time, including Steglatro, Steglujan and Segluromet, all of which Pfizer co-markets with Merck. Over the past month, Pfizer’s stock price has been rising, pushing its positioning to Very Overweight. See PFE’s future price move forecast.

 

5. Coca-Cola (KO)  Very Underweight -> Slightly Overweight

As an exceptional brand with dominant market share in many major markets, Coca-Cola’s stock price has been on a upward trajectory over the past month. Its market positioning went from Very Underweight to Slightly Overweight. However, the company might have limited upside potential with market competition and structural shifts away from sodas. See KO’s future price move forecast.

 

Top 5 Stocks with Decreasing Positioning

1. Morgan Stanley (MS)  Very Overweight -> Very Underweight

Affected by Italy’s escalating political crisis at end of May, Morgan Stanley’s stock price plunged by more than 5%. Its market positioning has dropped from Very Overweight to Very Underweight since then. Furthermore, the outlook for future earnings growth is also expected to decelerate significantly in 2019 and 2020, that might potentially cause more positioning reduce in the future. See MS’ future price move forecast.

 

2. Hewlett Packard (HPE)  Very Overweight -> Slightly Underweight

Since Hewlett Packard’s CEO told investors to expect a challenging second half of the year, its stock price has tumbled by more than 10%, pushing its market positioning from Very Overweight to Slightly Underweight based on CrowdThnk’s measure. See HPE’s future price move forecast.

 

3. JPMorgan Chase (JPM)  Very Overweight -> Slightly Underweight

Like many other banks, JPMorgan has seen a decline in general growth expectations due to an increase in risk as a result of recent market and macro turbulence. Its stock price has slumped in recent months and market positioning went down from Very Overweight to Slightly Underweight. At the moment the bank still remains on a mild growth trajectory. See JPM’s future price move forecast.

 

4. Schlumberger (SLB)  Very Overweight -> Slightly Underweight

Schlumberger has declined by more than 10% over the past month. Its market positioning has been reduced from Very Overweight to Slightly Underweight, according to CrowdThnk. Even it outlined expectations for 10%-15% EPS growth in Q2, its price slide further by -2%. See SLB’s future price move forecast.

 

5. General Electric (GE)  Neutral -> Very Underweight

The beleaguered industrial giant’s stock price has been down for over 9% during the last month, despite the announced deal between GE Transportation and Wabtec. While the recent risk of a potential US-China trade war might be weighing on GE’s price, its large exposure to oil has contributed significantly to the stock’s decline. See GE’s future price move forecast.

 

Here is a summary of stocks with largest positioning changes over the past month: