The Golden Cross is a well-known technical indicator used by traders and investors. It is a bullish chart pattern that indicates the reversal of a downtrend. Specifically, a golden cross forms when a stock's 50-day moving average price crosses over its 200-day moving average.
A stock's moving average smooths out stock price movement by creating a constantly updated average price. To better understand the golden cross indicator, the 50-day average is the leading indicator, and the 200-day average is the lagging indicator.
Traders, particularly day traders, may use the word period as a substitute for day. That's because traders or investors can identify the golden cross for specific periods such as weeks, days, or even hours.
This special presentation highlights seven stocks that have formed a golden cross pattern within the seven days of this writing. By buying stocks that confirm a golden cross pattern, you can capture the short-term upside in these stocks.
Quick Links
- Bilibili
- Aurora innovation
- HMN Financial
- First Capital
- Liberty Latin America
- GEN Restaurant Group
- Solid Power
#1 - Bilibili (NASDAQ:BILI)
Bilibili Inc. (NASDAQ: BILI) is a Chinese social media and entertainment company. It offers a range of digital content, advertising services, IP derivatives and other activities, such as business and technology development.
The company is also involved in e-sports through its Bilibili Gaming division, which was formed in 2017 when it became part of the League of Legends. The Bilibili Gaming team recently reached the finals of the League of Legends Mid-Season Invitational 2024
This event is likely what has fueled the interest in BILI stock. Bilibili will also report its quarterly earnings on May 23, 2024.
BILI stock is up 37% in 2024. However, the Bilibili analyst ratings on MarketBeat indicate a pullback may be coming. The average rating of Hold is supported by a price target of $15.37, which is a 4.97% decline from its price on May 20, 2024.
About Bilibili
Bilibili Inc provides online entertainment services for the young generations in the People's Republic of China. It offers a range of digital content, including professional user generated videos, mobile games, and value-added services, such as live broadcasting, occupationally generated videos, audio drama on Maoer, and comics on Bilibili Comic.
Read More - Current Price
- $15.12
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $16.91 (11.8% Upside)
#2 - Aurora innovation (NASDAQ:AUR)
Aurora Innovation Inc. (NASDAQ: AUR) is a leader in the autonomous driving space. Initially, the company is developing autonomous driving solutions for the trucking market using its Aurora Driver solution. The company plans to launch Aurora Driver in the fourth quarter of 2024.
In its Investor Day presentation in March, the company projected profitability sometime in 2026. This forecast is due in part to a strategic partnership with Volvo Autonomous Solutions.
Shares of Aurora Innovation have been on a wild ride in the last 12 months. In that time, the stock has been up 92.9%. However, it’s down 37.3% in 2024. Analysts are forecasting an approximate 39.9% increase in the AUR stock price.
Investors should be careful here as it appears the golden crossover may have been part of the meme stock interest that resurfaced in May. Short interest in AUR stock has shot 12% higher in the last month, which could have fueled the recent price movement. Nevertheless, as a long-term investment in autonomous driving, Aurora Innovation may be one to watch.
About Aurora Innovation
Aurora Innovation, Inc operates as a self-driving technology company in the United States. It focuses on developing Aurora Driver, a platform that brings a suite of self-driving hardware, software, and data services together to adapt and interoperate vehicles. The company was founded in 2017 and is headquartered in Pittsburgh, Pennsylvania.
- Current Price
- $3.90
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $3.75 (3.8% Downside)
#3 - HMN Financial (NASDAQ:HMNF)
Next on the list of golden cross stocks is HMN Financial Inc. (NASDAQ: HMNF). This is a holding company for the retail banker, Home Federal Savings Bank, which does business primarily in Minnesota but also in Wisconsin and Iowa. At the end of March 2024, the bank recorded $1.2 billion in assets, of which $872.3 million were in the form of loans and $1 billion in total deposits.
The catalyst for the Golden Cross action is the announcement that Alerus Financial Corporation (NASDAQ: ALRS) is buying the bank for approximately $116.4 million. The all-share deal is expected to close in the fourth quarter of 2024. This will be Alerus Financial’s 26th acquisition since 2000.
In the merger announcement, Alerus stated that HMNF shareholders would receive 1.25 shares of ALRS stock for each share of common stock they own. Investors looking to get involved must be shareholders of record before the merger is finalized.
About HMN Financial
HMN Financial, Inc operates as a bank holding company for Home Federal Savings Bank that provides various retail banking products and services. The company offers various deposit accounts, such as savings, interest bearing checking, non-interest-bearing checking, money market, individual retirement, and certificate accounts.
Read More - Current Price
- $25.50
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
#4 - First Capital (NASDAQ:FCAP)
First Capital Inc. (NASDAQ: FCAP) is the holding company for First Harrison Bank. As of December 2023, the 5-star rated bank had $1.16 billion in assets and $1.03 billion in deposits. The bank has 18 branches in Southern Indiana and Kentucky.
FCAP stock is up 4% in 2024 and 15.8% in the last 12 months. The company pays a regular dividend, although it doesn’t necessarily increase the payout annually. The latest dividend of 27 cents per share was paid on March 29, 2024.
The catalyst for the Golden Cross move seems to come from Empowered Funds LLC. The hedge fund increased its position in First Capital by 7.6% in the first quarter of 2024.
About First Capital
First Capital, Inc operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans.
Read More - Current Price
- $33.23
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
#5 - Liberty Latin America (NASDAQ:LILA)
The 5G buildout is well underway in the United States, but internationally, that’s a different story. This also explains, in part, why investors have recently become bullish on Liberty Latin America Ltd. (NASDAQ: LILA). The small-cap company is one of the leading providers of fixed, mobile, and subsea telecommunications services.
The company operates recognizable consumer brands such as Virgin Media O2 in the United Kingdom, VodafoneZiggo in the Netherlands, Telenet in Belgium, Sunrise UPC in Switzerland, Virgin Media in Ireland and UPC in Eastern Europe.
In addition, the company has a global investment division, Liberty Global Ventures, that includes a portfolio of 50 content, technology, and infrastructure companies.
Liberty Latin America appears to be a favorite of hedge funds. The company also announced the planned spinoff of its Sunrise affiliate. The Swiss company will become a standalone, publicly traded company sometime in the fourth quarter of 2024. As of May 2024, the spinoff was still contingent on shareholder approval and prevailing market conditions.
About Liberty Latin America
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies.
Read More - Current Price
- $9.38
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $8.67 (7.6% Downside)
#6 - GEN Restaurant Group (NASDAQ:GENK)
GEN Restaurant Group (NASDAQ: GENK) is the parent company of Gen Korean BBQ restaurants in seven states. Founded in 2011, Gen has become one of the leading Asian casual dining restaurant concepts in the United States. The company’s business model allows guests to become their own chefs in an interactive, engaging dining experience.
GEN Restaurant is another tiny company with a market cap of just $395.68 million as of this writing. It only started trading publicly in June 2023. Nevertheless, its golden cross moment stems from positive earnings that affirmed bullish analyst sentiment for GENK stock.
As of May 20, 2024, the recent price action is pushing GENK stock close to its consensus target of $13.83. However, analysts maintain a Buy rating on the stock, and another strong earnings report is likely to have analysts increasing their price targets.
About GEN Restaurant Group
GEN Restaurant Group, Inc operates restaurants in California, Arizona, Hawaii, Nevada, Texas, New York, and Florida. It offers meats, poultry, and seafood. The company was founded in 2011 and is based in Cerritos, California.
- Current Price
- $8.01
- Consensus Rating
- Buy
- Ratings Breakdown
- 3 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $13.17 (64.4% Upside)
#7 - Solid Power (NASDAQ:SLDP)
The case for Solid Power Inc. (NASDAQ: SLDP) as a golden cross stock to watch is simple. However, it still carries a level of risk that may be unattractive to some investors. As its name suggests, Solid Power develops solid-state batteries. If successfully delivered at scale, this technology would threaten the lithium-ion battery as a standard for electric vehicles (EVs).
On the plus side, Solid Power has a solid balance sheet with no debt. The company also has several key partnerships in place with Ford Motor Co. (NYSE: F) and BMW (OTCMKTS: BMWYY). The company has already delivered A-sample cells to its partners for testing. It also plans to develop A-2 sample cells – which the company says will potentially provide superior safety and performance.
That said, many companies have tried and failed to advance solid-state technology. However, Solid Power appears to have a formula that’s working. If you can look past the high short interest on SLDP stock, it may be worth a speculative bet.
About Solid Power
Solid Power, Inc develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells.
Read More - Current Price
- $1.24
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $3.00 (141.9% Upside)
Like many technical indicators, the golden cross is used primarily by traders to signal when they enter and exit positions. However, buy-and-hold investors can still benefit from this trading signal.
The axiom that time in the market is better than timing the market is still as true today as ever. But even if you have a long position, buying a stock you currently own when it's forming a golden cross pattern can lead to opportunistic growth.
That said, a golden cross can be a false breakout signal. Finding stocks that are forming a true golden cross requires confirmation, which may require more time staring at screens than many investors would prefer.
It's also important to understand why a stock may form a golden cross pattern. That's why MarketBeat offers a free tool that provides a list of stocks that have formed a golden cross within the last seven trading days. This free tool is updated every trading day.
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