Monday's IBD 50 Stocks To Watch pick is construction giant Carlisle Cos., which has broken out past a new buy point after testing that entry in recent sessions. That makes Carlisle stock one of the best stocks to buy and watch right now in the stock market.
Carlisle makes single-ply roofing, waterproofing materials, wiring, optical fiber technology and equipment that handles the application of adhesives and coatings.
Chief Executive Chris Koch, during Carlisle's earnings call in early February, said he was optimistic about "a strong, multiyear re-roofing cycle." He cited pent-up demand from the pandemic and demand for more energy-efficient buildings.
In late April, Carlisle reported first-quarter results that solidly beat expectations, with earnings up 85% and revenue 23% higher year over year.
For its upcoming second-quarter report, due out July 24, Carlisle earnings are expected to rise nearly 15% year over year to $5.89 per share, according to FactSet. Carlisle earnings are expected to jump more than 30% in 2024, FactSet says.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Stocks To Buy: Carlisle Breaks Out
On Friday, Carlisle stock attempted to clear a 430.21 buy point in a flat base, according to MarketSurge pattern recognition. Shares briefly topped that entry before closing below it. Now, shares are again above their buy point, as they rallied 1% Monday morning.
The 5% buy area runs up to 451.72. Keep in mind that there is extra risk due to the upcoming earnings report, but there is a little time for the stock to create a profit cushion.
With IBD's recommended equity exposure range remaining at 80%-100%, investors should still be looking to buy breakouts among top-rated stocks.
Carlisle stock boasts a strong 97 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup, due to strong long-term earnings growth and big price gains since a December 2023 breakout.
The relative strength line is recovering after a sharp decline from late May's highs. It isn't at new highs yet, which is a flaw as the stock price hits new highs. Look for continued strength in the RS line to indicate confirmation of stock market leadership if the breakout move gains momentum.
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Other Best Stocks To Watch
Three IBD 50 Growth Stocks To Watch picks from earlier this year are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Hilton | 215.79 | Flat base | |
| Booz Allen Hamilton | 164.43 | Flat base | |
| Palantir Technologies | 26.57 | Cup with handle |
Source: IBD Data As Of July 15, 2024
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
