Google parent Alphabet, a Magnificent Seven stock and artificial intelligence leader, heads up this weekend's watch list of five stocks near buy points that have remained steadfast as the postelection rally suddenly turns volatile.
In addition to Google stock, the list includes network-security play CyberArk Software, Doximity, an online platform for medical professionals, Singapore-based gaming and e-commerce company Sea Ltd. and ACV Auctions, a digital business-to-business marketplace for used cars.
Google is part of the IBD Leaderboard portfolio of elite stocks. GOOGL stock is also a current SwingTrader position. Doximity is part of the flagship IBD 50 list of leading growth stocks.
Fed, Trump Agenda Inject Volatility
The stock market finished the week on a strong note, buoyed by a calming inflation report. Yet that followed the sharpest three-session drawdown since early August, triggered by concern over the Federal Reserve interest-rate outlook. The median forecast among Fed policymakers was for still-elevated 2.5% core inflation next year, but forecasts went as high as 3.2%. That latter forecast apparently came from the segment of rate-setting committee members who began to incorporate assumptions about President-elect Donald Trump's agenda, including some combination of tax cuts, tariffs and tighter immigration.
After delivering a third-straight rate cut, Chairman Jerome Powell indicated that "policy uncertainty" coming from the new administration means the Fed's job in the months ahead will be "like driving on a foggy night."
Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.
While Wall Street is still upbeat about expected tax cuts and deregulation, markets face headline risk from tariffs and immigration restrictions that Trump may announce upon taking office on Jan. 20. However, analysts see political developments playing out favorably for some of the stocks in this weekend's watch list.
What To Do As Bulls Fight Back; Shutdown Threat Over
Google Stock
Google CEO Sundar Pichai and founder Sergey Brin dined recently at Mar-a-Lago with Trump, who has signaled doubt about the Biden Justice Department's bid to break up the search giant.
Analysts see Google as among the beneficiaries if TikTok is banned effective Jan. 19. The Supreme Court granted TikTok a hearing on Jan. 10 to make its case that the law passed by Congress banning Chinese ownership of the social media app violates free speech.
Google stock surged 8.7% two weeks ago as release of its Willow quantum computing chip and its updated AI model, Gemini 2.0, won plaudits. Bank of America said the achievements enabled by Willow "underscores ongoing innovation at Google," while Goldman Sachs hailed Gemini 2.0 as proof that Alphabet remains "at the forefront of all aspects" in computing innovation. BofA and Goldman both have buy ratings and 210 price targets for GOOGL.
Google fell 3.6% on Wednesday, pulling back into a buy zone from a 182.49 cup-with-handle buy point. On Friday, Google rose 1.5% to 191.41. The buy zone runs through 191.61.
CyberArk Stock
Stifel hiked its price target for CyberArk to 370 from 335 on Wednesday, keeping a buy rating. Analyst Adam Borg said the enterprise software group stands out as a "safe haven" from political shifts amid little or no exposure to China and tariffs.
Israel-based CyberArk is the industry leader in privileged access management, controlling access to and monitoring critical systems. CyberArk's efforts to branch out into a one-stop shop, safeguarding not just human identities but machine identities, took a step forward via its Venafi acquisition, which the firm says expanded its total addressable market by $10 billion to reach $60 billion.
"Ongoing digital transformation, pervasive cloud computing and the rise of AI are driving an exponential increase in the number of machine identities, which can outnumber human identifies by as much as 45 to 1," CyberArk said in announcing the closing of its Venafi deal on Oct. 1. "If left unprotected and unmanaged, these identities can serve as a lucrative hunting ground for cybercriminals who seek to exploit their vulnerabilities."
CyberArk rose 1.3% to 319.15 on Friday, continuing its rally off Wednesday's low of 303.82, which was right at its 50-day moving average. The rebound from its 50-day line on slightly above-average volume has carried CYBR past its 21-day exponential average, flashing an early entry opportunity. Ideally, CYBR would break above the trendline sloping down from its Dec. 5 peak. A move past 326.50 would provide a clear break.
CyberArk also has a three-weeks-tight entry at 333.32
CyberArk is ranked No. 2 in the Computer Software-Security industry group, according to IBD Stock Checkup. It has an impressive 95 IBD Composite Rating, a single rating that combines technical and fundamental factors.
Doximity Stock
Doximity has been compared to a LinkedIn site for medical professionals, with a community that includes over 80% of U.S. physicians, 60% of nurse practitioners and 90% of graduating med students. The platform has evolved into much more, including an AI assistant, enabling members to collaborate with colleagues, manage their schedules, streamline administrative paperwork and conduct virtual patient visits.
A net revenue retention rate of 116% over the past four quarters is a testament to the platform's indispensability and innovation. That shows members aren't only keeping their subscription but adding features.
Having access to most physicians also makes Doximity an attractive advertising platform. Jefferies analyst Glen Santangelo, who has a 64 price target and buy rating on DOCS stock, wrote in a Nov. 27 note that Trump's nomination of Robert F. Kennedy Jr. as secretary of Health and Human Services could offer some upside for Doximity.
Kennedy has been critical of direct-to-consumer pharma ad spending, which totals around $10 billion. "Regulatory pressure could push some of this spend to other channels," Santangelo wrote. Doximity, which advertises directly to physicians, "would be a natural beneficiary."
Doximity surged 4.8% to 57.83 on Friday. The move carried DOCS past a 56.67 buy point from a handle formation. The buy zone runs through 59.50.
Sea Stock
After going through some struggles, Sea Ltd. now seems to be firing on all three cylinders — with "high growth across all our three businesses," CEO Forrest Li said in the Nov. 12 Q3 earnings statement.
The e-commerce business, Shopee, returned to profitability in Asia and Brazil. Free Fire, the hit game from its Garena unit, is expected to see over 30% growth in bookings this year. SeaMoney, the digital payments and financial services provider, saw its loan book grow over 70%.
SE fell to the vicinity of its 10-week and 50-day moving averages on Friday, before rallying intraday to finish off 0.9% at 110.64. Ideally, SE would retake its 21-day exponential average before seizing on the early entry opportunity.
ACV Auctions Stock
ACV Auctions was featured in IBD's The New America on Nov. 15. Although the used car market has struggled, ACV has been gaining market share in the wholesale space, hosting digital auctions for dealer-to-dealer sales. When consumers trade in their old car for a new one or return cars after vehicle leases expire, they may decide to move those used vehicles off their lots, if they have too much inventory or the vehicle isn't a good match for their clientele.
ACV lets dealers avoid the cost of transporting vehicles to Mannheim for physical auctions. ACV's selling point isn't just a lower cost. It also has built leading technology and services to facilitate all aspects of used-car auctions, including inspections and pricing.
Citizens JMP analyst Nick Jones told Investor's Business Daily that ACV's growth due to market-share gains, even before the used-car market recovers, makes the stock "like a coiled spring."
ACVA slid to its 50-day moving average on Wednesday, falling out of a buy zone as Treasury yields jumped, which is a negative for auto sales. But the stock rebounded strongly the past two sessions, including Friday's 4.5% gain to 21.89.
ACVA is back in a buy zone, clear of a 21.11 buy point from a cup base. The buy zone runs through 22.17.
