boeing ,B. A, Monolithic Power Systems ,mpwr) And working day ,WDAY) are this week’s top stocks to watch as they act on traditional buy points or offer early entries. lenar ,lane) And ehr test system ,aehr) also cut.
The stock market is improving, so it is time to make a watch list.
Most of the top stocks this week have relative strength lines that are trending sideways, indicating resilience in the current volatility. Lenor has an RS line that is starting to trend upwards. A rising RS line means a stock is outperforming the S&P 500.
MPWR’s stock has got a place in ibd swingtrader,
WDAY belongs to both Stock and Monolithic Power ibd 50 list of top growth stocks.
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Boeing stock has a new flat base after Friday with a 221.43 buy point. Shares have been consolidating over the past month after a massive run since late September. BA stock is below the 50-day line, but a strong move above the 50-day would offer an early, trendline entry, surpassing the March 14 high of 213.56.
BA stock fell 1% to 201.05 for the week. The RS line is not far from the 52-week high.
The Dow Jones aviation and defense giant rose in 2023 as commercial air travel recovers and its order pipeline accelerates.
This is increasing Boeing’s earnings. Analysts polled by FactSet expect Boeing’s earnings to be four cents in 2023, a big improvement from a loss of $11.06 in 2022. In 2024, Wall Street sees Boeing earning $5.80 per share.
The airplane maker had suffered a series of setbacks over the past several years after being hit by the Covid pandemic and laying off flagship planes including the 787 and 737.
Boeing screens mixed in terms of key IBD ratings. This earns an IBD overall rating of 73, EPS Rating RS rating of 26 and 93, all out of the best possible 99.
A 93 Relative Strength Rating means that BA stock has outperformed 93% of all stocks in IBD’s database over the past 12 months.
Monolithic Power continues to form a deep cup-with-handle with a 530.85 buy point, rising nearly 2% for the week to 488.31.
Early last week, MPWR stock found support at the 10-week line on Monday, then reclaimed the 21-day exponential average on Thursday. A move above the March 9 high of 516.69 may offer an early entry.
The RS line has made a record high in recent days, which is a bullish sign ahead of a possible breakout.
The fabless chipmaker comes under the IBD Long-Term Leaders Watchlist.
Its technologies provide power solutions across a wide range of industries and applications, including industrial applications, telecommunications infrastructure, cloud computing, automotive and consumer.
MPWR stock also has an overall 99 Comp rating and 99 EPS rating in addition to 93 RS rating.
Monolithic Power’s earnings to jump 67% in 2022. They are seen slowing to 6% growth in 2023, then rebounding to 18% growth the following year.
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Workday shares have a new flat base with 193.74 buy point. They range from the base of the cup size to the earlier breakout of 184.60 entry. Investors can also use this week’s bounce above the 50-day and 21-day lines as an opening entry.
WDAY stock rose 5.9% last week to $188.77. The RS line is rising to a 10-month high.
Workday stock has a Composite Rating of 98, EPS Rating of 93 and RS Rating of 87.
Late last year, the enterprise software maker raised subscription revenue guidance for 2023. The company sells software for human capital management, such as payroll tools. In addition, it has expanded into financial software.
Workday earnings are expected to increase by 40% for the full year. They declined nearly 9% last year amid a bear market for technology stocks.
Shares of Lenor are trading at flat-basis buy point of Rs 109.38. He offered an early entry on Thursday near the 50-day line. On Wednesday, LEN stock initially rose after Lennar’s strong earnings and guidance, but reversed lower.
But weekly action was strong: Lennar stock gained 6.3% to 103.50, rebounding from the 50-day line. Its RS line has reached a 52-week high.
The homebuilder shows a 97 Comp rating, 87 EPS rating and 94 RS rating.
Last year, Lenor faced a tough housing market. Rising interest rates put pressure on demand from home buyers and new orders declined. Challenges remain, but it is expected to benefit from a significant housing shortage, particularly workforce housing.
Lennar’s earnings grew 10% in 2022, but fell 21% in Q4. They are expected to fall 37% in 2023 before rebounding to 9% the next year.
Aehr Test Systems has a new base with a 37.67 buy point.
AEHR stock ran 10.3% last week to 32.25, closing just above the 21-day and 50-day lines. A rebound above Friday’s high of 33.84 could provide an early entry. AEHR stock is prone to wild moves, so it’s probably best to watch for early entries versus traditional breakouts.
The RS line has flattened after reaching the high.
The semiconductor equipment maker earns 99 composite rating, 78 EPS rating and 99 RS rating.
Electric vehicles (EVs) are driving big revenue growth for Ehr Test Systems.
The Fremont, California-based company manufactures semiconductor test and reliability qualification equipment. Aehr’s biggest growth comes from systems for testing and burn-in of silicon carbide, or SiC, power chips for EVs. One is stress testing a component to detect burn-in problems.
Aehr earnings boomed in the last fiscal year. They more than tripled in the latest quarter and are set to jump 42% for the full year.
For more quality stocks with strong RS lines, check out IBD’s Relative strength in new high stock inventory, Our stock research platform MarketSmith also has a screening tool for stocks making new highs along the RS line.
For other great stock ideas, check out IBD’s proprietary watch list, such as IBD 50 And this IBD Big Cap 20,
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