Tuesday's IBD 50 Stocks To Watch pick is bitcoin stock Hut 8, which soared past a buy point Monday. That makes the Miami-based bitcoin miner one of the best ideas to watch right now.
Bitcoin rallied near $90,000 Monday as the world's largest cryptocurrency continues to notch record highs in the wake of the Nov. 5 elections. President-elect Donald Trump was pro-crypto during his campaign and is expected to offer a friendly regulatory regime for digital assets. That should provide a tailwind for bitcoin exchange traded funds and related stocks such as Hut 8.
The company's third-quarter earnings report is due Wednesday before the market open. That adds a considerable amount of risk to the recent breakout move. However, investors who bought at the correct entry have a profit cushion.
Analysts polled by FactSet see Hut 8 losing 29 cents a share on revenue of $35.1 million. Further, they predict sales growth of 48% vs. the year-ago period. For the full year, Wall Street forecasts the company's earnings will soar by 197% to $1.57 per share, per IBD MarketSurge.
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Bitcoin Stock Breaks Out
On Monday, Hut 8 shares surged more than 25%, breaking out past a 21.10 buy point in an abnormally deep cup base. The stock is extended beyond the 5% buy zone that topped out at 22.16. Shares of bitcoin stock Hut 8 retreated nearly 3% in morning trades Tuesday.
Bullishly, the stock's relative strength line hit a new high Monday, confirming the bitcoin stock as a market leader. That indicator also points to big market outperformance.
Despite strong price action in recent months, Hut 8 stock shows a modest 87 out of a best-possible 99 IBD Composite Rating, according to IBD Stock Checkup. That's because the bitcoin miner doesn't have a long-term track record of earnings growth.
Finally, market risk has abated with stocks at all-time highs, and investors should be looking to maintain an exposure level of 80%-100%.
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Other Stocks To Keep An Eye On
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Nu Holdings | 15.16 | Flat base | |
| Nvidia | 140.76 | Consolidation | |
| Hims & Hers Health | 23.74 | Cup with handle |
Source: IBD Data as of Nov. 12
Follow Scott Lehtonen on X at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
