Microsoft, Novo Nordisk and Intuitive Surgical are among this week's top stocks to watch as they set up in bases after recovering key levels. Apollo Global Management and Booking Holdings also made the cut.
Microsoft stock can be found on the IBD Long Term Leaders list. Novo Nordisk belongs to IBD Leaderboard as well as the IBD 50 list of top growth stocks. Intuitive Surgical nabbed a spot on IBD SwingTrader May 15 as shares surged.
The relative strength lines of all five top stocks to buy and watch have flattened out a bit after rallies, but remain not far from highs. A rising RS line, the blue line in the charts shown, means a stock is outperforming vs. the S&P 500 index.
The stock market flashed a green signal to investors Thursday, with major indexes hitting record highs.
Microsoft Stock
Shares of the technology giant climbed for a fourth straight week, rebounding from the 10-week moving average. Microsoft stock shows a 430.82 buy point in an eight-week flat base, still 2% below the entry. Investors could use a move back above Thursday's high at 425.42 as an early trendline entry.
Keep in mind that: Nvidia reports earnings on Wednesday, May 22, after the close. That report could have a material bearing on Microsoft stock. Both Nvidia and Microsoft are considered artificial intelligence leaders. Both also count among the Magnificent Seven stocks that powered the market rally in the past year.
Microsoft itself reported fiscal third-quarter earnings on April 25. On a year-over-year basis, Microsoft earnings grew 20% while sales rose 17%. Strength in the cloud computing business drove the solid gains.
Analysts now expect 20% earnings growth for the full year and a further 13% gain next year. Sales are seen rising 15% and 14% over those same periods.
Microsoft earns an IBD Composite Rating of 84 and an EPS Rating of 96, both out of a best-possible 99. An 78 RS Rating means that it has outperformed 78% of all stocks in IBD's database over the past year.
Nvidia Offers Huge Test; 5 AI Stocks Near Buy Points
Novo Nordisk Stock
Shares of the Wegovy maker rallied for a second straight week, regaining the 10-week line. Novo Nordisk stock eyes a 138.28 buy point from shallow cup base, still 5% below the entry. It's up 24% from a prior flat-base breakout in January, the MarketSurge pattern recognition shows.
Shares pulled back late last week. It's possible that Novo is starting work on a handle, which would offer a lower buy point.
Novo Nordisk stock owns an IBD Composite Rating of 96, EPS Rating of 97 and RS Rating of 89.
On May 2, the company posted a 25% EPS surge and 19% revenue increase for the first quarter. Long known for its diabetes treatments, Denmark-based Novo Nordisk has continued to innovate. Its Ozempic and Wegovy treatments for diabetes and weight loss have been driving growth.
Analysts expect 23% profit growth in 2024 and a 23% rise in 2025.
Intuitive Surgical Stock
Shares of the maker of robotic surgery systems powered up for the fourth consecutive week, reclaiming the 10-week line. Intuitive Surgical stock is working on a 403.76 flat-base buy point, still 2% below the entry. Investors could still use Wednesday's move above the 50-day line as an early entry.
Intuitive stock holds an IBD Composite Rating of 90, EPS Rating of 92 and RS Rating of 83.
On April 19, the company disclosed that earnings climbed 22% in the first quarter as sales ramped 11.5% higher.
Analysts project 10% profit growth in 2024 and a 17% gain in 2025.
Apollo Global Management Stock
Shares of the investment firm advanced for a second consecutive week, above the 10-week line. The MarketSurge shows Apollo Global Management stock in a six-week flat base with a 117.15 buy point.
Investors could use Wednesday's high of 115.48 as an early entry.
Apollo Global stock holds an IBD Composite Rating of 93, EPS Rating of 95 and RS Rating of 88.
On May 2, the company delivered a 21% EPS increase for the first quarter as sales grew 13%. That report came days after Apollo announced that it would acquire U.S. Silica Holdings in a $1.85 billion deal, taking private the supplier of commercial silica used in the oil and gas industry.
Analysts forecast 12% profit growth in 2024 and a 20% increase in 2025.
Booking Holdings Stock
Shares of the travel company eased after a three-day win streak, still holding above the 10-week line. Booking Holdings stock has formed a double-bottom base, forging a handle as of Friday. That gives Booking a 3,811.57 buy point.
The handle formed following several days of gains following earnings.
Booking stock holds an IBD Composite Rating of 94, EPS Rating of 98 and RS Rating of 75.
On May 2, the parent company behind Booking.com, Priceline and Kayak posted a 76% EPS surge for the first quarter on a 17% sales gain. Booking is taking share from rival Expedia, analysts said after the report. The company said global leisure travel remains resilient with the key summer season ahead.
Analysts anticipate 16% profit growth in 2024 and a 17 % rise in 2025.
