Royal Caribbean, Allstate and Target all currently trade within striking distance of buy points as investors cheer their earnings turnarounds.
Here is a look at each of these large-cap stocks, each a giant in its respective industry:
Royal Caribbean Stock
Shares of the cruise operator edged higher on the stock market today, above the 50-day moving average. Royal Caribbean stock closed in on a 133.77 buy point in a cup-shaped base, less than 3% below the entry.
The relative strength line for the travel stock has rebounded to near its highest level in more than three years, a positive sign. The RS line remains below the consolidation peak for now.
The stock began to consolidate in February. It has now rallied for four straight weeks, forming the right side of the base.
On Feb. 1, Royal Caribbean beat earnings estimates for the fourth quarter by 9%, FactSet shows. Earnings came in at $1.25 per share, reversed from a $1.12 loss a year earlier. For full-year 2023, the cruise line swung to earnings of $6.77 per share on a 57% revenue jump.
Royal Caribbean continues to benefit from robust travel demand and pricing trends. They anticipate a further 47% earnings gain in 2024, above the company's guidance.
Allstate Stock
Shares of the insurance giant dipped a fraction to 162.36 Tuesday. Allstate stock trades 3% below a 168.05 buy point from a six-week flat base. It's above a rising 50-day moving average.
On Feb. 8, the insurer crushed earnings views for the fourth quarter by 48%, FactSet shows. Earnings per share for the quarter were $5.82, vs. a $1.36 loss in Q4 2022. For the full 2023 year, Allstate swung to EPS of 95 cents on an 11% revenue gain.
Allstate has benefited from strong rate increases and improved underwriting income, analysts say. They expect a further 1,200% EPS gain to $12.35 in 2024.
Target Stock
Shares of the big-box retailer nudged up to 168.21 Tuesday. Target stock is now 4% below a 175.53 cup-with-handle buy point from a year-plus bottoming base.
Arguably, the retail stock offered an early, aggressive entry as it rebounded from the 50-day moving average last November and then in February.
On March 5, Target reported it handily beat holiday-quarter earnings expectations by 23%, FactSet shows. Earnings rose to $2.98 per share, vs. a decline to $1.89 in the year-ago quarter. For the full year, the retailer delivered a 49% EPS rebound despite a 1.6% revenue decline.
Analysts say the company has made solid progress in managing inventories and becoming more efficient, offsetting its still-muted sales outlook. They expect a further 5% EPS gain in the current fiscal year, which ends in January.
Top Large-Cap Stocks
Each of the large-cap stocks above earns an IBD Composite of 88 and above, out of a best-possible 99. Royal Caribbean stock bears a near-perfect CR of 98.
If you want to invest in a large-cap stock, IBD offers several other strong ideas here.
To find the best stocks to buy or watch, check out IBD Stock Lists and other IBD content.
