It's no news that 2023 has been choppy, with only a few industries really standing out from the crowd. Here, we highlight five leading S&P 500 stocks to buy and watch that have held up well.
S&P 500 Stocks To Buy And Watch: Nvidia At New Highs
Well, what can we say about Nvidia, a 2023 Wall Street darling? The stock tapped an all-time high of 502.66 on Aug. 24, the day following the company's earnings report, but ended the day with a ho-hum performance.
The stock gained over 4% on Tuesday, to close at an all-time high, after Alphabet's Google Cloud and Nvidia announced they're expanding their partnership. The gain earned Nvidia a $1.2 trillion market capitalization. Shares, which are up more than 230% this year so far, are above a 480.88 entry.
The leading AI chip developer reported another fantastic quarter, far exceeding Wall Street's expectations, on Aug. 23. Nvidia's July-ended quarterly earnings exploded 429% over last year's quarter, while sales soared 101%.
Nvidia forecast current-quarter sales of $16 billion, up 170% from the same period last year.
Nvidia has emerged as a leader in semiconductors, software and services for artificial intelligence applications, including generative AI.
Analysts estimate extraordinary 187% annual EPS growth this year, and robust 57% growth next year.
Boeing In Buy Zone
Boeing shares are back in the 5% buy zone of a flat base that goes to 235.11.
The stock spiked 8.7% in heavy volume and broke out past the 223.91 buy point, after the company on July 26 reported a smaller-than-expected second-quarter loss and higher sales.
Shares hit a 52-week high on Aug. 1, before pulling back and getting support at the 10-week moving average.
The stock got hit hard on Aug. 24, on news of yet another problem with its 737-MAX planes. News of fuselage defects from supplier Spirit AeroSystems sent the stock plummeting nearly 5%, to fall below its 50-day moving average.
The stock recovered the next day and has since reclaimed its 21-day exponential moving average.
Boeing is working on a deal to sell more 787-10 Dreamliners to Australia's Qantas Airways, according to Barron's. The company also signed a deal with Indonesia to sell the country 24 F-15EX fighter jets.
Boeing is also working on a venture with Ethiopian Airlines for the airlines to make Boeing aerospace parts, according to Reuters.
Analysts provide investors a ray of hope for Boeing, as they forecast a profitable 2024 after four years of losses and another one expected this year.
Network Stock Hits Highs
Arista Networks is in a buy zone reaching to 187.28, after the stock soared nearly 20% and broke out past a 178.35 entry on Aug. 1.
Shares have twice hit 52-week highs since the company reported earnings July 31. Shares have ridden the 21-day line up since the breakout.
Arista beat second-quarter profit and sales expectations. Quarterly EPS grew 46% on sales growth of 39%. Although impressive, both numbers lagged their prior four quarters' growth.
Analysts project healthy 35% EPS growth this year and 10% in 2024.
Arista sells computer network switches that speed up communications among racks of computer servers in data centers. Facebook parent Meta Platforms is one of its biggest clients.
Arista is hoping to jump on the AI bandwagon. As companies need more AI chips, they may require more network computing capabilities.
S&P 500 Stocks To Buy And Watch: Travel Stock Rallies
Booking Holdings gapped up 7.9% in heavy volume Aug. 4, breaking out past a 2,786.85 buy point. The travel company reported higher-than-expected second quarter earnings and sales the previous day.
The stock wavered around the 21-day line, and retook the line on Monday. The stock has gained around 54% this year through Tuesday's close.
The Fortune 500 company posted 97% EPS growth and 27% sales growth. Analysts project robust 44% EPS growth in 2023 and 17% in 2024.
Booking's brands include Booking.com, Priceline, Agoda, Rentalcars.com, Kayak and OpenTable.
Leading Pharmaceutical Stock Hovers In A Base
Vertex Pharmaceuticals is trading in a flat base with a 367 buy point. The biotech posted better-than-expected Q2 EPS and sales on Aug. 1.
Shares are trading tightly where the 50- and 21-day lines converge.
Several analysts raised their price targets on the stock following the latest earnings report. Vertex raised its full-year revenue guidance to $9.7 billion to $9.8 billion, primarily due to demand for its cystic fibrosis treatment, Trikafta.
VRTX ranks third out of a whopping 778 stocks in the biotech industry group, which is ranked a decent 58th on IBD's list of 197 industries.
Vertex is working on next-level drugs for cystic fibrosis treatment, a gene-editing drug developed with Crispr Therapeutics to treat sickle cell disease, a pain drug and a type 1 diabetes treatment.
Analysts estimate a 12% EPS drop in 2023 and then a 12% increase in 2024, according to FactSet.
These S&P 500 stocks to buy and watch are worth a deep look.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
