Boeing (B.A), Monolithic Energy Systems (MPWR) And working day (WTAG) are the top stocks to watch this week as they work at traditional buy points or offer early entries. lennar (LEN) And Aehr test systems (ahr) also make the cut.
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The stock market is in a correction, which is a time to create watch lists.
Most of this week’s top stocks have relative strength lines that move sideways, a sign of resilience given the current volatility. Lennar has an RS line that is beginning to trend upwards. A rising RS line means a stock is outperforming the S&P 500.
MPWR stock has found a place on the IBD Swing Trader.
Both WDAY stock and Monolithic Power are among the IBD-50 list of the top growth stocks.
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BA share
Boeing stock has a new flat base with a buy point of 221.43 after Friday. Shares have consolidated over the past month after a tremendous run from late September. BA stock is below the 50-day MA, but a strong move above the 50-day MA and clear of the 213.56 March 14th high would provide an early entry into the trendline.
BA shares fell 1% this week to 201.05. The RS line is not far off a 52-week high.
Aerospace and defense giant Dow Jones is sharply higher in 2023 as commercial air travel recovers and its order pipeline swells.
That fuels Boeing’s revenue. Analysts polled by FactSet expect Boeing to make four cents in 2023, a huge improvement from a $11.06 loss in 2022. For 2024, Wall Street is expecting earnings of $5.80 per share for Boeing.
The planemaker had suffered from the Covid pandemic on travel and a series of setbacks on key aircraft, including the 787 and 737, in recent years.
Boeing has mixed screens when it comes to key IBD ratings. It deserves an IBD Composite Rating from 73, EPS rating of 26 and RS Rating of 93, all of the best possible 99.
The 93 Relative Strength Rating means that BA stock has outperformed 93% of all stocks in the IBD database over the last 12 months.
MPWR bearings
Monolithic Power continues to build a deep cup with a handle with a buy point of 530.85 and is up nearly 2% for the week to 488.31.
Earlier last week, MPWR stock found support at the 10-week moving average on Monday and then recaptured the 21-day exponential moving average on Thursday. A move above the 9th March high 516.69 could offer an early entry.
The RS line has made a record high in the past few days, a bullish sign ahead of a potential breakout.
The fabless chipmaker is on the IBD Long-Term Leaders watch list.
Its technologies drive power solutions across a wide range of industries and applications, including industrial, telecom infrastructure, cloud computing, automotive and consumer.
MPWR stock also has a perfect 99 comp rating and a 99 EPS rating alongside a 93 RS rating.
Monolithic Power’s earnings boomed 67% in 2022. They are expected to slow to a 6% gain in 2023 and then grow back to 18% next year.
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WDAY stock
Workday shares have a new flat base with a buy point of 193.74. They are still within range of an earlier breakout behind a 184.60 entry from a cup shaped base. Investors could also use this week’s bounce off the 50-day and 21-day moving averages as an early entry.
WDAY shares rose 5.9% to 188.77 last week. The RS line rises to a 10-month high.
Workday shares have a composite rating of 98, an EPS rating of 93 and an RS rating of 87.
Late last year, the enterprise software maker raised its subscription revenue forecast for 2023. The company sells software for human capital management, such as B. Payroll Tools. Also, it has expanded into financial software.
Working days are expected to rebound by 40% for the full year. They’ve fallen nearly 9% over the past year amid the bear market for tech stocks.
LEN stock
Lennar shares are trading at a flat buy point of 109.38. They rallied from near the 50-day moving average on Thursday to offer early entry. On Wednesday, LEN stock initially rose but reversed lower after strong gains and Lennar’s forecast.
But the weekly action was strong, with Lennar shares up 6.3% to 103.50 and bouncing off the 50-day moving average. Its RS line has risen to a 52-week high.
The Homebuilder shows a 97 Comp Rating, 87 EPS Rating and 94 RS Rating.
Last year Lennar suffered from a difficult housing market. Rising interest rates weighed on homebuyer demand and new orders fell. Challenges remain but it is expected to benefit from a significant housing shortage, particularly working class housing.
Lennar’s profit rose 10% in 2022 but fell 21% in the fourth quarter. They are expected to plummet 37% in 2023 before rebounding 9% next year.
AEHR stock
Aehr Test Systems has a new base with a buy point of 37.67.
AEHR shares rose 10.3% last week to 32.25 and closed just above the 21-day and 50-day moving averages. A rebound above Friday’s high of 33.84 could offer early entry. AEHR stock is prone to wild moves, so it’s probably best to look for early entries versus traditional breakouts.
The RS line has flattened out after shooting at elevations.
The semiconductor equipment manufacturer has a composite rating of 99, an EPS rating of 78 and an RS rating of 99.
Electric vehicles (EVs) drive sales growth at Aehr Test Systems.
Based in Fremont, California, the company manufactures semiconductor test and reliability qualification equipment. Most of Aehr’s growth comes from systems for testing and burn-in of silicon carbide or SiC power chips for electric vehicles. Burn-in is a stress test of a component to detect problems.
Aehr’s revenues have boomed over the past fiscal year. They more than tripled in the last quarter and are poised to climb 42% for the full year.
Check out IBDs for more quality stocks with strong RS lines Relative strength on New High stock list. Our stock research platform MarketSmith also has a screening tool for stocks with RS lines making new highs.
For more great stock ideas, check out IBD’s proprietary watchlists, such as: IBD 50 and the IBD Big Cap 20.
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Source : www.investors.com