Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

1 Stock To Buy, 1 To Dump When Markets Open: DocuSign, Carnival

Published 07/18/2021, 05:27 AM
Updated 09/02/2020, 02:05 AM

Stocks on Wall Street sold off on Friday, with the major averages ending in the red due to renewed concerns about an upsurge in infections of the Delta coronavirus variant.

S&P 500 Daily Chart

U.S. stocks could face more volatility in the week ahead as Q2 earnings season shifts into high gear, with reports expected from some of the big-name U.S. technology stocks, including Netflix (NASDAQ:NFLX), IBM (NYSE:IBM), Intel (NASDAQ:INTC), Twitter (NYSE:TWTR), and Snap (NYSE:SNAP).

Also reporting this week are other high-profile companies, such as Johnson & Johnson (NYSE:JNJ), Coca-Cola (NYSE:KO),  AT&T (NYSE:T), Verizon (NYSE:VZ),  American Express (NYSE:AXP), as well as United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL), Southwest Airlines (NYSE:LUV), Domino’s Pizza (NYSE:DPZ), and Chipotle (NYSE:CMG).

Amidst this sea of earnings—and the increasing numbers of Delta variant infections, we've highlighted one stock likely to be in demand in the coming days and another which could see fresh losses. 

Remember though, our timeframe is just for the week ahead.

Stock To Buy: DocuSign 

Fears about a surge in coronavirus cases tied to the highly contagious Delta variant have returned to the forefront, as the U.S. grapples with a renewed burst of infections more than 18 months into the pandemic.

According to the latest data, all 50 states are now experiencing an increase in new cases, with public health officials warning of an extraordinary surge yet to come.

As the prevalence of infection grows, some authorities have begun to impose renewed pandemic-era restrictions.

That could result in more positive action for cloud-based software-as-a-service company DocuSign (NASDAQ:DOCU), which is widely considered the leader in the e-signature market.

DocuSign Daily Chart

DOCU stock—which rose to a new record high of $298.35 on July 12—ended at $282.05 on Friday, earning the San Francisco, California-based firm a valuation of roughly $55 billion.

DocuSign has thrived over the past year as the COVID-19 pandemic and the shift to the work-from-home environment created soaring demand for its e-signature platform.

Year-to-date, shares have gained 26.7%, easily outpacing the S&P 500’s 15.2% increase over the same timeframe.

With fears brewing over another potential wave of the coronavirus—and subsequent lockdowns to slow its rapid spread—it makes sense for investors to pile back into the leading provider of electronic signature technology due to growing demand for remote-work tools.

Stock To Dump: Carnival Corporation

Shares of Carnival Corporation (NYSE:CCL)—the world’s largest cruise line operator—are expected to suffer another miserable week amid growing fears over the spread of the highly transmissible COVID Delta variant in the U.S.

The current 7-day moving average of daily new cases soared nearly 70% from the previous week to about 26,000, the most since mid-May, according to the latest numbers from the Centers for Disease Control and Prevention.

CDC Case Chart

Hospitalizations and deaths are also on the rise again, climbing around 36% and 26% respectively, reversing a months-long decline that started in mid-January.

The worrying surge in infections and deaths could prompt cities and states across the country to reimpose mask guidelines and other social distancing measures, potentially disrupting the peak summer vacation season.

In a concerning development for Carnival, Florida has emerged as a national hot spot, accounting for 1 in 5 cases in the past week.

The cruise operator recently announced that it will begin requiring passengers and vacationers in Florida to purchase special COVID-19 travel insurance if they want to board its ships.

Carnival Daily Chart

Taking that into account, Carnival—which has seen its shares steadily drop to new lows and may find itself in the position of needing to raise more capital—could experience further headwinds in the coming days as investors react to more negative COVID-related headlines.

CCL stock closed Friday’s session at a five-month low of $20.92, roughly 33% below its recent post-pandemic high of $31.52 reached on June 8.

At current levels, the Doral, Florida-based cruise giant has a market cap of $24 billion.

Latest comments

ok
He is right for the next week, maybe even month but eventually it will be the opposite..just imo
ok
Well if think about the short term then do it. By next year the cruises will be back to normal and Delta will be history.
not so fast,more restrictions,less traveling
for docusign, you should insert a timeline...
can u tell me about DJI it will go up or come down....
Way to late. DOCU had a big runup and CCL has dropped alot
this !
In 2022 covid will be history...
not with the Democrats in charge
I'm not dumping carnival...
depends what price you got in at. I dumped recently but will buy for a long term hold once an entry is good. I will be looking for a short opportunity
I bought at 15 usd...
Honestly who cares about a variant. If 60% are vaccinated and 20% have immunity, that's 20% left to be infected and recover. what am I missing?
nothing and everything. Look at U.K - almost 70% vaccinated ,and spaik again ?? Think ...
well, cause it's fake
Let the virus run through society already! Its going to happen, no matter what we do. Quit being so scared of something with a 99.8% survival rate. The faster it runs through society, the faster we get over it.
True. In Russia most people have had it and most of them survived without difficulties. It's a bit worse than flu in most bad cases. Now all have natural immunity whereas here in the US we'll be getting vaccinated and wearing masks for life.
you don't take percentages to the bank or the morgue. 1918 pandemic took 50 million lives. quit being afraid of learning from history.
How much did Daddy Putin pay you for that post?
hello
yss boss
hi
g
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.