Are you ready for the biggest pro football game of the year? The showdown between the Denver Broncos and the Carolina Panthers in Super Bowl 50 should be epic. Both teams can score points although Denver may have the better defense.
Who's going to win? Let's look at the charts of four companies, two each representing Denver and Charlotte, N.C., for clues.
Denver's defense is represented by Lockheed Martin (LMT) , which is not located in Denver but is one of the largest employers in the area. The company reported earnings on Jan. 26 and beat analysts' estimates although the stock slipped to its 2016 low of $200.47 on Jan. 26.
This stock is an important holding in Jim Cramer's charitable portfolio, Action Alerts PLUS. According to Cramer and Research Director Jack Mohr, Lockheed Martin "is a direct beneficiary from mounting defense budgets and escalating geopolitical tensions, particularly in the Middle East, where management’s relationships with some of the region’s key leaders -- built on deeply embedded trust and an impeccable track record of quality -- has allowed it to secure a robust project pipeline and international portfolio."
This company "throws off cash in spades" the way Denver quarterback Peyton Manning once threw touchdown bombs, "generating market-leading free cash flow yields and returns that cash to shareholders" with a 3%+ yield dividend and a massive share repurchase program."
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Newmont is the Peyton Manning of the game. For the year to date, Newmont has a gain of 29.8%, which is like a golden arm throwing for six touchdown passes.
Utility giant Duke Energy (DUK) is headquartered in Charlotte and is scheduled to report earnings on Feb. 16. Duke is the Cam Newton of the game for his electrifying ability to escape pressure for either launching a long pass, or running with abandonment and at times tip-toeing along the sidelines to score. Year to date, Duke has a gain of 10.2%, combining a strong return.
Panthers defense is represented by Wells Fargo (WFC) , another company that, while not located in Charlotte, is one of the largest employers of the area. The "too big to fail" money center bank reported quarterly results on Jan. 15 and beat analysts' estimates without a positive reaction.
The stock is down 11.2% year to date and in correction territory 17.9% below its all-time high set on July 23. This is a warning the Panther defense has lost big leads in the second half a few times in the regular season. The bank has had a history of financial penalties, and fines for unnecessary roughness on the issuance of mortgages.
However, Jim Cramer is a big Wells Fargo fan. "Wells continues to be best-in-class in an industry plagued by regulatory overhang," Cramer and Mohr said. "Its 3% yield offers attractive income amidst a volatile environment."
So who wins Super Bowl 50? Denver, 43-39, as Peyton Manning wins the silver MVP reward.
Here's the pre-game scorecard.
The weekly charts shown below are mixed. The red line through the weekly price bars is the key weekly moving average (a 5-week modified moving average). The green line is the 200-week simple moving average considered the "reversion to the mean." The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicates overbought and readings below 20.00 indicates oversold. A negative weekly chart shows the stock below its key weekly moving average with weekly momentum declining below 80.00 in a trend towards 20.00.
How are the individual companies doing?