IBD Screen Of The Day: 3 Leaders Near Buy Points Score Rising Profit Estimates

Alphabet (GOOGL), otherwise known as Google stock, is featured in today’s IBD Screen Of The Day and is in buy range. Two other leaders with rising profit estimates are also near buy points.


Investors searching for stocks to buy or watch should make a habit of checking out the column, which focuses on a list of top ideas in the IBD Stock Screener. All the lists in Stock Screener offer a look at stocks with bullish characteristics. Today we focus on rising profit estimates — with a technical analysis angle.

When analysts raise their earnings forecasts on a company, that’s a vote of confidence. On the technical side, you’ll want to focus on those close to a buy point or breaking out to new highs, such as these three:

Google Stock

Google parent Alphabet is in buy range after clearing a 2,431.48 entry of a five-week flat base, according to MarketSmith chart analysis. The buy range goes up to 2,553.05. Google stock has rallied nearly 40% this year.

IBD Stock Checkup assigns Google stock a highest-possible 99 Composite Rating, which gives investors a quick way to gauge a stock’s key growth traits. That puts Alphabet among the top stocks in the 66-stock internet content group, along with Facebook (FB) and Snap (SNAP).

A 94 Earnings Per Share Rating, part of the overall composite score, is also among the group’s best. That includes a five-year compound earnings growth rate of 18%. Analysts expect EPS to jump 65% this year and 8% the next. Analysts have revised both estimates upward.

On the technical side, an 83 Relative Strength Rating means Google stock is in the top 17% of all stocks. Google’s relative strength line, which compares a stock’s performance vs. the S&P 500, is near record highs.

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Shopify Stock

Shopify (SHOP) is close to a 1,499.85 buy point of a cup base, which it briefly cleared last week. A caveat: The base is late stage, as the stock has been in a multiyear uptrend. That’s a risk, since stocks tend to make their biggest advances out of early-stage bases. Shares, up 32% this year, soared 185% last year.

A 93 Composite Rating puts Shopify among the top stocks in the 101-stock enterprise software group. A 99 EPS Rating leads the group. Analysts expect Shopify’s earnings to rise 9% this year and 12% the next — both upward revisions.

Entegris Stock

Entegris (ENTG) is close to a 126.51 buy point of a cup base and is about 5% away from the entry. It also has set up an earlier entry of 123 after forming a four-weeks-tight pattern.

The chip gear maker boasts solid ratings: 96 Composite, 92 EPS and 80 RS. Entegris’ five-year earnings growth rate is 26%. Analysts have revised their 2021 and 2022 estimates higher to 26% and 18%. The relative strength line is near its highs. A move to a new high at or ahead of a breakout would be a bullish sign.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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