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The death cross has come calling for some stocks. A death cross is a price chart pattern that forms when a stock’s 50-day moving average crosses below its 200-day moving average. It can be taken as a signal that investors are bearish on a stock or that the stock’s momentum weakening and will push it lower. A handful of stocks, ranging from well-known food names to a lesser-known energy company, are close to drawing a death cross. CNBC Pro found six: One of those is PepsiCo . The snack-and-soda maker has struggled this year, sliding about 6% since 2023 began. But analysts are bullish on the stock, according to LSEG, with an average rating of buy and price target implying shares could rally more almost 20%. Pepsi initially showed interest in acquiring Hostess Brands, the company known for Twinkies. Peanut butter and jelly maker J.M. Smucker ended up buying Hostess in a deal announced this month. McCormick , known for its spice, seasoning and condiment brands, has sold off more this year, down nearly 11% year to date. The average analyst has a hold rating, with a price target indicating upside of nearly 17%, per LSEG. One of those analysts is HSBC’s Alejandro Zamacona, who initiated research coverage on McCormick with a hold rating earlier this month. While he noted the company is a global leader, he said the stock is “priced out of reach.” “Cooking ingredients and condiments is a relatively small category globally and in the U.S., compared to other packaged food categories,” he said in a note to clients. “Despite the strong growth profile amid M & A capabilities, we see no reason to pay a premium to its peers.” BlackRock also made a death cross and is similarly down more than 9% on the year. The average analyst has a buy rating and the consensus price target foresees 26% upside in the stock, according to LSEG. Bank of America analyst Craig Siegenthaler said in a note to clients that the Federal Reserve’s decision to keep interest rates unchanged at its meeting last week could bode well for BlackRock next year. The company is connected to themes such as the move to fixed income, money markets and private credit that typically do better in a higher-rate environment. “We are bullish on BLK’s 2024 given the prospects for sizable bond reallocations following the Fed pause,” Bank of America said. — CNBC’s Michael Bloom and Fred Imbert contributed to this report
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