When the market is struggling, as it is now, investors should look for stocks holding up relatively well. DoorDash, Interactive Brokers, Tyler Technologies and Freshpet are trading slightly below buy points. Sea Limited is holding in a buy zone.
Quality names for the watchlist, but it's not a great time to be buying stocks.
DoorDash Stock
Food and grocery delivery company DoorDash is a member of the IBD Leaderboard Leaders watchlist and was featured in this week's The New America.
DASH stock is trading below a 131.21 buy point for a 22-week cup-with-handle base.
Shares pulled back below their 21-day exponential moving average on Friday, but are still up more than 6% from their 50-day line. One upside is that DoorDash's handle offered a bit more of a shakeout.
DASH stock jumped at the beginning of August after DoorDash cleared Q2 sales forecasts with a 23% jump in revenue to $2.6 billion. The company's 19% increase in total orders helped soothe any worries over the wider-than-expected loss of 38 cents per share. On an adjusted basis, DoorDash has recorded positive earnings the last six quarters.
Analysts expect DoorDash to post positive earnings on both a reported and Non-GAAP basis starting in Q3. FactSet predicts DoorDash will report full-year earnings of 3 cents per share for 2024 and improve to $1.63 per share in 2025.
DASH stock rallied 25% so far this year.
Interactive Brokers Stock
Interactive Brokers ranks second in the Finance-Invest Bank/Bankers Group, according to the IBD Stock Checkup and is a member of the IBD 50 list.
The Greenwich, Conn.-based company provides electronic markets and brokerage services to investors, hedge funds, and trading groups across the globe. Earnings growth accelerated over the last two quarters to a 33% increase for its mid-July results. Revenue growth ranged from 14% to 23% during that period.
IBKR almost topped a 129.19 buy point on Aug. 30. By Sept. 6, shares undercut their 21-day lines and tested their 50-day line. On a weekly chart, Interactive Brokers has a handle with a 128.98 entry.
IBKR stock leapt 48% year to date.
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Tyler Technologies Stock
Government technology services and integrated software provider Tyler Technologies was the IBD Stock Of The Day for Wednesday as it hovers below a buy point.
TYL stock is trading near a 593.50 entry for a six-week flat base, which matches its all-time high from late July. Shares have held above their 50-day line since mid-June, as well as their 21-day exponential moving average since late August.
The 6%-deep base formed after a strong run from late April to late August, with earnings gaps on both ends of the move.
Tyler Technologies recorded positive earnings growth the last five quarters and has been shifting to a subscription-based business model, as well as offering software through Amazon Web Services, part of tech behemoth Amazon.com.
TYL stock jumped 39% so far this year.
Sea Stock
Sea trades in American Depositary Receipts (ADRs) on the New York Stock Exchange under the ticker SE.
The Singapore-based global tech conglomerate provides various e-commerce and financial services, as well as products for developing and publishing online games.
Sea's earnings declines improved over the last two quarters, to a 76% decrease for its Q2 report on Aug. 13 from a 129% drop in Q4. Still, analysts forecast full-year earnings increase 439%, improving even further from its 114% earnings growth for 2023.
SE stock managed to hold its 76.60 buy point and 21-day line.
The buy zone, which stretches 5% beyond the buy point, extends to 80.43.
SE stock initially broke out on Aug. 14, the day after its earnings report, and extended at the end of August before settling back into the buy zone.
Despite the recent pullback, shares have bolted nearly 91% in 2024.
Sea was Friday's IBD Stock Of The Day.
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Freshpet Stock
Freshpet is on the IBD Leaderboard list of Leaders near a buy point, the IBD 50 list, and also served as the IBD Stock Of The Day for Tuesday.
FRPT stock on Friday eased out of the buy zone for its seven-week consolidation. The decline pulled Freshpet back to just above its 21-day line. Shares initially cleared the 136.35 buy point for the pattern on Aug. 23.
Freshpet vaulted 56% so far this year.
The Bedminster, N.J.-based company produces steam-cooked, grain-free and antioxidant-rich meals for canines and cats.
Earnings growth slowed to a still-impressive 91% increase for its Aug. 5 report after recording triple-digit gains the two quarters prior. Freshpet averaged about 31% sales growth during that time.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
