AI stock Nvidia and Bitcoin ETF provider BlackRock lead five top companies to watch near buy points this week. China stock Trip.com also makes the cut, along with Travelers Companies and Emcor.
Top Stocks Show Strength Near Buy Points
Trip.com stock flashed a bullish signal as it broke out on Monday. Nvidia stock found support to regain a buy point last week while BlackRock stock offered an early entry. Shares of artificial intelligence chipmaker Nvidia are consolidating near record highs ahead of a possible new run. The other two top stocks to watch trade just below buy points and their 52-week highs.
Notably, Nvidia stock earns a spot on two top IBD lists: Leaderboard and the IBD 50 list of top growth stocks.
Also on Leaderboard: GraniteShares 2x Short NVDA Daily ETF, offering investors a way to hedge a long Nvidia position as the chipmaker trades above all of its moving averages. And on IBD 50: Emcor stock, which is winding up for its next move in a bullish pattern.
The relative strength lines for four out of the five top stocks to watch this week are rising and not far from highs. The RS line for TCOM stock struck a new high on Monday. A rising RS line, the blue line in the charts shown, signals outperformance vs. the S&P 500 index. It would be a positive sign to see this price strength indicator move to an all-time high as the stocks try to break out or extend breakouts.
The S&P 500 and Nasdaq hit record highs on Friday. Investors viewed a Goldilocks jobs report as keeping the Fed on its rate-cutting path. Analysts warned of signs of investor fatigue beneath the surface.
Nvidia Stock An AI Winner
Shares of the AI chipmaker popped back above a 140.76 buy point last week, rebounding from the 50-day / 10-week moving averages. But it retested those support levels on Monday.
The Nvidia stock chart shows it has been consolidating since late June. Investors could use the $150 price area as an alternate or add-on entry from clearing the bulk of the recent trading range.
The RS line for Nvidia stock has moved sideways since June with the shares, according to the MarketSurge chart. It rallied strongly in the first half of the year and remains near all-time highs.
Nvidia earns an IBD Composite Rating of 97, EPS Rating of 99, and RS Rating of 95, all out of a best-possible 99. The 95 RS Rating means that the AI stock has outperformed 95% of all stocks in IBD's database over the past year.
Nvidia's earnings more than doubled in the third quarter ended Oct. 27. Though impressive, growth actually slowed vs. the previous five quarters.
The AI chip giant grew earnings at a redoubtable 236% pace over the past three quarters, according to the IBD Stock Checkup tool. That is far above the three-year average rate of 94%.
For the full year, analysts expect Nvidia earnings per share to more than double, vaulting 127%. They expect earnings growth to slow to a still-robust 49% next year.
Recent news indicates demand for Nvidia's AI chips remains high. UBS Global Wealth Management said: "Big Tech's combined capex (capital expenditure) spending of $218 billion this year and another $254 billion in 2025 bodes well for the AI investment thesis."
Year to date, Nvidia stock has vaulted 179%. That includes a 15% gain in the current quarter amid quarterly earnings and the presidential election.
Nasdaq Nears 20,000 But This Risk Rises
BlackRock Stock Rides Bitcoin ETF Success
Shares of the investment giant snapped a slight downtrend in a four-weeks-tight pattern last week. BlackRock stock also bounced from its 21-day exponential moving average, extending a recent rebound from near the 10-week line. Both moves signaled an early entry opportunity.
The financial stock continues to work on a 1,068.34 traditional buy point, according to MarketSurge pattern recognition. Shares traded around 2% below that trigger on Monday.
IBD named BlackRock the IBD Stock Of The Day last Thursday as it became actionable on the 21-day bounce.
BlackRock stock owns a Composite Rating of 90, EPS Rating of 76 and RS Rating of 83.
In the third quarter, BlackRock earnings trudged up 5%, but beat views, as revenue rose 15%. Earnings are poised to accelerate to a 19% gain in the current quarter. For the full year, analysts now project that BlackRock earnings will speed up to 14.5% growth from 6.8% in 2023. They anticipate a further 12.5% increase next year.
Some analysts expect the world's largest asset manager's foray into private credit, including its $12 billion HPS deal, to boost earnings. Amid bitcoin mania, BlackRock is basking in the success of its iShares Bitcoin ETF. The exchange traded fund has surpassed $50 billion in assets, more than double the size of its nearest ETF competitor.
Year to date, BlackRock stock sits on a 29% gain. That includes a 10.7% rally in the current quarter.
Workday, Apollo Global Jump On S&P 500 News
Trip.com Stock Breaks Out, Eyes China Stimulus
The China-based operator of a one-stop travel platform surged nearly 9% on Monday. Trip.com cleared a 69.67 buy point from a nine-week consolidation near highs. It grew quickly extended, meaning shares surged above a proper buy range.
The RS line for TCOM stock, the blue line in the chart provided, hit a new high on Monday. That is marked by a blue dot at the end of the strength indicator on the daily MarketSmith chart. It's a favorable sign when a stock the RS line makes a high as a stock breaks out.
China stocks rallied broadly on Monday after Beijing pledged further economic stimulus.
Trip.com stock holds a Composite Rating of 97, EPS Rating of 72 and RS Rating of 94.
Earnings growth averaged around 51% over the last three quarters. But it continues to slow on a sequential basis, reaching 19% in the latest quarter. Revenue growth did pick up to 20% in the latest quarter, snapping a deceleration trend.
Analysts expect Trip.com earnings to leap 32% for the full year and to rise 6% next year.
China stocks can be volatile. That is especially true now amid fears of another bout of tit-for-tat tariff wars under President-elect Donald Trump.
Further to that, China's Golden Week holiday in early October affirmed a trend in more cautious travel spending, CNBC reported.
However, Trip.com and other Chinese stocks are counting on domestic stimulus to reignite growth.
Year to date, Trip.com stock has more than doubled, rocketing 108%. That includes a 29% jump in the current quarter.
Emcor Stock An Infrastructure Play
The building services provider shows a four-weeks-tight pattern with a buy point of 532.38. That entry also marks the all-time high for Emcor stock.
The pattern formed after Emcor stock topped a 20% profit zone from a September breakout past 401.98. But volume has been drying up as this industrial stock awaits a catalyst for its next leg up.
Shares found support at a rising 21-day line last week. They plunged on Monday to test the 50-day line.
Emcor stock flourishes a Composite Rating of 99, EPS Rating of 98 and RS Rating of 94.
Earnings growth averaged almost 73% over the last three quarters, above the three-year rate of 45%.
Analysts expect Emcor earnings to jump 57% for the full year and to grow 8% next year.
The company provides critical infrastructure systems. A 2023 bipartisan infrastructure law pumped billions of dollars into roads, bridges, airports, railroads, ports and more.
Year to date, Emcor stock has more than doubled, surging 123%. That includes an 12.5% jump in the current quarter.
Super Micro Wins Key Nasdaq Extension. The Stock Is Soaring.
Brighter Insurance Outlook For Travelers Stock
Shares have carved a cup-with-handle base with a 269.05 buy point. Travelers stock now sits about 6% below the entry, after sliding on Monday below the 50-day average.
The base formed entirely above the 50-day line, a positive sign. IBD had picked the Dow Jones insurance giant as Stock Of The Day in late November as it eyed a breakout to highs.
Travelers stock holds a Composite Rating of 92, EPS Rating of 96 and RS Rating of 79.
Earnings growth boomed in the latest two quarters, lapping easy comparisons. The Dow Jones commercial, personal and specialty insurer eyes an earnings turnaround. That comeback reflects higher underwriting volumes, higher interest rates and higher stock markets. Broadly, insurers are recovering from big underwriting losses in recent years.
Analysts project Travelers earnings will soar 44% and grow a further 12% in 2025.
Year to date, TRV stock has ripped 33% higher. That includes a 10% rally in the current quarter.
For other ideas on the best stocks to buy and research, check out the IBD Big Cap 20 and Long Term Leaders.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
