Shares of many airlines and cruise operators were lower last week on concerns about the continued spread of the delta variant of COVID-19.
The virus variant is spreading rapidly in parts of Asia, including Japan where the Olympics start on Friday, elsewhere in the world.
The Dow Jones Industrial Average recorded its worst day of 2021 on Monday. Socks plummeted, ending globally and sharply lower as investors took refuge in safe-haven assets and weighed how rising COVID-19 cases could help economic recovery in the US and globally to influence.
The Dow finished 725 points lower, or 2.09%, at 33,962, the S&P 500 fell 1.59% and the Nasdaq fell 1.06%. At Monday’s lowest level, the Dow blue chips fell 946 points or 2.7%, the S&P 500 bounced back 2.2% and the Nasdaq fell 1.7%.
On real money, Jim Cramer writes that there is “too much speculation, too little stability in the face of a COVID rebound”. It’s a buyers’ revolt, he says, mixed with a strong belief that the Delta variant will take away all the benefits of the speculative economy. Want more of his real-time market analysis? Read his list of factors that continue to weigh on stocks and how investors can protect their portfolios.
Airlines such as United Airlines (UAL) – Get Report and American Airlines (AAL) – Get Report and cruise lines such as Norwegian Cruise Line Holdings (NCLH) – Get Report were among the biggest losers. They tumbled over fears over the spread of the COVID-19 delta variant and worry that new lockdown restrictions will slow the economic recovery.
However, Jim Cramer of TheStreet said from the floor of the New York Stock Exchange, “You have to start buying here, simply because you don’t know when the bottom will be.”
Here are several stocks that have fallen over the past week that could offer an opportunity to buy the dip.
1. Virgin Galactic | -20.50% last week | -12.09% 1 month
virgin galactic (SPCE) – Get Report Shares continued to fall a week after the space company, founded by entrepreneur Richard Branson, said in a filing that it could sell up to $500 million worth of shares. Branson recently took a test flight to space and that of Amazon (AMZN) – Get Report Jeff Bezos is scheduled to make his first space flight on Tuesday.
TheStreet does not have a Quant Rating for Virgin Galactic.
2. Norwegian Cruise Lines | -19.79% last week | -27.79% 1 month
Norwegian Cruise Lines (NCLH) – Get Report, who has filed an amicus brief in the matter, is suing Florida Surgeon General Scott Rivkees for the right to demand that all passengers be vaccinated against COVID-19 once it resumes its Florida cruises on Aug. 15. Florida sued the CDC in April, claiming the agency’s restrictions on the cruise industry during the pandemic effectively blocked most cruises and harmed the state’s livelihood.
TheStreet Quant Ratings rates Norwegian Cruise Lines as a sale with a rating score of D.
3. AMC Entertainment | -18.69% last week | -41.54% 1 month
AMC entertainment (AMC) – Get Report and a group of 36 other meme stocks are down a whopping 4.4%, according to Bloomberg, a sixth straight decline, after the group’s worst week since late February. Earlier this month, AMC scrapped plans to let shareholders approve a planned capital increase that would have diluted existing shareholders.
TheStreet Quant Ratings rates AMC Entertainment as a sale with an E+ rating.
4. Carnival Corp. | -17.35% last week | -30.02% 1 month
It was not an easy run for Carnival Cruise (CCL) – Get Report. Shares of the Miami cruise operator fell about 2% on Thursday, but that’s much better than the 5.2% loss the stock had at its recent low. Carnival fell in late June when it said it plans to raise another $500 million. It fell again when it paid off its debt a few days later.
TheStreet Quant Ratings rates Carnival as a sale with a rating score of D.
5. Royal Caribbean | -14.83% last week | -18.90% 1 month
Royal Caribbean (RCL) – Get Report, in conjunction with the Florida Division of Emergency Management (FDEM), are docked Explorer of the Seas ship in the Port of Miami to provide free housing and support to the search and rescue teams working on the Surfside apartment collapse.
TheStreet Quant Ratings rates Royal Caribbean as a sale with a rating score of D.
6. United Airlines | -14.20% last week | +20.92% 1 month
United Airlines Holdings (UAL) – Get Report is one of the airlines and cruise lines that collapsed due to concerns about the continued spread of the delta variant of COVID-19.
TheStreet Quant Ratings rates United Airlines as a sale with a rating score of D+.
7. Boeing Co. | -13.17% Last week | -12.82% 1 month
boeing co. (BA) – Get Report shares fell lower Tuesday after the aircraft maker said it would cut production of its 787 Dreamliner after it discovered structural flaws in the troubled two-aisle plane. The company said it would deliver “less than half” of 787s currently in stock by year-end, lower than the previous forecast of “the vast majority” as it partners with the Federal Aviation Administration to plug gaps in what is known as the forward pressure bulkhead.
TheStreet Quant Ratings rates Boeing as a sale with a rating score of D.
8. MGM Resorts International | -11.86% last week | -10.41% 1 month
MGM Resorts International (MGM) – Get Report agreed to buy Infinity World Development’s 50% stake in CityCenter Holdings for $2.125 billion. Under the agreement, MGM Resorts will become 100% owner of CityCenter on the Las Vegas Strip, a complex consisting of Aria Resort & Casino and Vdara Hotel and Spa.
TheStreet Quant Ratings rates MGM Resorts as a sale with a review score of C-.
9. Coinbase Worldwide | -10.89% last week | -3.75% 1 month
Cathie Wood-led ARK Investment Management (ARK) Shares in chipmaker Nvidia lost (NVDA) – Get Report and ecommerce back-end provider Shopify (STORE) – Get Report, moving some of the capital to Coinbase Global (CURRENCY) amid a dip in the crypto exchange provider’s share price. The investment firm, according to reports, picked up 27,844 shares, estimated to be worth about $6.77 million, in cryptocurrency exchange Coinbase on the dip.
TheStreet does not have a Quant Rating rating for Coinbase Global.
10. Delta Airlines | -10.06% last week | -14.28% 1 month
Delta Airlines (OF THE) – Get Report rose last week before collapsing after Raymond James analyst Savanthi Syth gave the airline a double upgrade to strong buy in the market with a price target of $58 after an earnings call. Morgan Stanley analyst Ravi Shanker, who maintained an overweight rating and a price target of $73, said the stock deserves to be “traded significantly higher than current levels.”
TheStreet does not have a Quant Rating rating for Skillz.
NOTE: Recently, quantitative analysis by TheStreet Quant Reviews objectively assessed these stocks based on their risk-adjusted total return prospects over a 12-month investment horizon. Not based on any particular day’s news, the assessment may differ from Cramer’s or ‘s opinion the author of this article.