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

By Investing.com (Jesse Cohen/Investing.com)Stock MarketsJul 18, 2021 05:27AM ET
www.investing.com/analysis/1-stock-to-buy-1-to-dump-when-markets-open-docusign-carnival-200592050
1 Stock To Buy, 1 To Dump When Markets Open: DocuSign, Carnival
By Investing.com (Jesse Cohen/Investing.com)   |  Jul 18, 2021 05:27AM ET
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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
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
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
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
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.

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

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

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Comments (12)
Khemara Khemara
Khemara Khemara Jul 29, 2021 7:53AM ET
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Jim Horn
Jim Horn Jul 19, 2021 1:06AM ET
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He is right for the next week, maybe even month but eventually it will be the opposite..just imo
five sel
five sel Jul 19, 2021 1:06AM ET
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ZS Beck
ZS Beck Jul 18, 2021 11:42PM ET
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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.
Alois Matousek
Alois Matousek Jul 18, 2021 11:42PM ET
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not so fast,more restrictions,less traveling
Meru Pet
Meru Pet Jul 18, 2021 7:19PM ET
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for docusign, you should insert a timeline...
Syed Zada
Syed Zada Jul 18, 2021 5:37PM ET
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can u tell me about DJI it will go up or come down....
Stanton Friedman
Stanton Friedman Jul 18, 2021 4:35PM ET
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Way to late. DOCU had a big runup and CCL has dropped alot
Meru Pet
Meru Pet Jul 18, 2021 4:35PM ET
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this !
Daniel Orlowski
Daniel Orlowski Jul 18, 2021 12:50PM ET
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In 2022 covid will be history...
Dan Hasch
Dan Hasch Jul 18, 2021 12:50PM ET
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not with the Democrats in charge
Daniel Orlowski
Daniel Orlowski Jul 18, 2021 12:27PM ET
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I'm not dumping carnival...
Jerry Mueller
Jerry Mueller Jul 18, 2021 12:27PM ET
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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
Daniel Orlowski
Daniel Orlowski Jul 18, 2021 12:27PM ET
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I bought at 15 usd...
Options Trader
Options Trader Jul 18, 2021 12:20PM ET
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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?
Aleksandr Rogovoy
Aleksandr Rogovoy Jul 18, 2021 12:20PM ET
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nothing and everything. Look at U.K - almost 70% vaccinated ,and spaik again ?? Think ...
Matt Novakovich
Matt Novakovich Jul 18, 2021 12:20PM ET
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well, cause it's fake
Jeffrey Vose
Jeffrey Vose Jul 18, 2021 11:12AM ET
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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.
John Romanoff
John Romanoff Jul 18, 2021 11:12AM ET
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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.
James Barcelona
James Barcelona Jul 18, 2021 11:12AM ET
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you don't take percentages to the bank or the morgue. 1918 pandemic took 50 million lives. quit being afraid of learning from history.
Frank Castle
Frank Castle Jul 18, 2021 11:12AM ET
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John Romanoff How much did Daddy Putin pay you for that post?
Charles Asante
Charles Asante Jul 18, 2021 11:05AM ET
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hello
Aĸʜtʌʀ Kʜʌŋ
Aĸʜtʌʀ Kʜʌŋ Jul 18, 2021 11:05AM ET
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yss boss
MD BELLA
MD BELLA Jul 18, 2021 11:02AM ET
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Aĸʜtʌʀ Kʜʌŋ
Aĸʜtʌʀ Kʜʌŋ Jul 18, 2021 11:02AM ET
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