Nvidia[ticker symb=NVDA] and JPMorgan Chase lead this weekend's watch list of five stocks near buy points entering a pivotal stretch for the S&P 500. Along with AI chip leader NVDA and banking behemoth JPM, the list includes enterprise data storage firm Pure Storage, work supplies and uniform provider Cintas and homebuilder PulteGroup.
Nvidia is part of the IBD Leaderboard portfolio of elite stocks. The flagship IBD 50 list of leading growth stocks includes both NVDA and CTAS. Cintas also is on the watch list for the IBD Long-Term Leaders list of stocks with the track record that makes them actionable on constructive pullbacks. SwingTrader opened a position in JPM last week, joining Nvidia stock.
Inflation data in the coming week, including the consumer price index for April out Wednesday, will go a long way in determining whether the latest uptrend has legs. Producer price index data out Tuesday morning will update price trends for several categories that feed directly into the Fed's primary inflation rate, the core PCE price index, including the biggest — health care services.
A moderation in inflation data after a hot start to the year is probably needed to keep the latest uptrend intact. Nvidia earnings for its fiscal first quarter through April may be just as critical. Nvidia's blockbuster Q1 report last May provided the extra thrust that turned the artificial intelligence stock boom galactic.
Nvidia Stock
Nvdia reports Q1 results on May 22. Analysts expect earnings per share to rocket over 400% to $5.91 a share, according to the FactSet consensus. Revenue is expected to balloon to $24.448 billion, up 240% from a year ago and up 10.6% from Q4's $22.1 billion.
Analysts have continued to raise the bar for Nvidia after the company's March 18 release of its Blackwell platform for accelerated computing that the company says can run large language AI models at up to 25 times less cost and energy consumption than its predecessor.
On Friday, HSBC raised its NVDA stock price target by 300 to 1,350, keeping a buy rating. HSBC sees fiscal 2026 revenue potentially reaching $196 billion.
Nvidia stock rose 1.3% to 898.78 in Friday stock market action. The stock has been consolidating since March 8 and has an official 974 buy point, according to a MarketSurge analysis. However, Nvidia could have a cup-with-handle buy point of 922.20 after one more session.
JPMorgan Stock
JPMorgan Chase shares tripped on April 12 Q1 earnings, with analysts highlighting an outlook for full-year net interest income of $90 billion, about $2 billion below expectations. The outlook for Fed rate cuts plays into that. CFO Jeremy Barnum noted on the Q1 earnings call that JPM has "$900 billion of deposits paying practically zero."
The upshot: A slower pivot to rate cuts may lead customers to move more funds to take advantage of higher market interest rates.
Following the Fed's somewhat dovish outlook on May 1, at least relative to expectations, bank stocks have been on the rebound. JPM, which had lagged other big banks, has been playing catch-up in recent weeks.
On Wednesday, JPM darted up 2% off support at its 50-day moving average, flashing an early entry on a break of the trend line from its March 28 peak. JPM has an official buy point of 200.94 from a six-week flat base.
JPM's Relative Strength line, the blue line in IBD charts that tracks a stock's progress vs. the S&P 500, has climbed to a new multiyear high. That can be a bullish sign when it precedes a breakout to new highs.
Pure Storage Stock
Pure Storage will report fiscal first-quarter results on May 29. Q4 results, which showed EPS slipping 6% to 50 cents as sales dipped 3% to $789.8 million, reflected a shift to a subscription business model. The new model charges customers based on how much storage they use, rather than booking hardware and services revenue upfront.
Analysts expect revenue growth to be positive going forward. In Q1, Pure Storage earnings share is forecast to jump 163% to 21 cents a share, as revenue grows 16% to $681 million.
PSTG's strategy is to consolidate data storage using a single operating and management environment. The alternative of a "fragmented data storage environment" could make it more difficult for companies to train and operate artificial intelligence models, CEO Charles Giancarlo said on the Q4 earnings calls.
On March 15, Citi initiated coverage on PSTG stock with a buy rating and 65 price target. The firm cited PSTG's participation in the fast-growing all-flash storage segment, recent AI-related wins and cost advantages.
Pure Storage stock rose 0.55% to 54.41 on Friday, climbing to just 1% below a 55.09 buy point from a double-bottom base, according to MarketSurge.
PSTG stock vaulted 25% to 52.65 on Q4 results, eventually peaking at 58.46 the following week.
Storage provider Nutanix edged into a buy zone from a double-bottom base on Thursday, while NetApp is a hair below a buy point.
Cintas Stock
Cintas reported fiscal Q3 results on March 27 that showed sales rising 10% to $2.41 billion, including 7.7% organic revenue growth. Earnings growth accelerated for the second quarter in a row, increasing 22% to $3.84 per share.
Gross margin as a percentage of revenue rose to 49.4% from 47.2% the year prior, as ongoing efficiency efforts bore fruit.
Cintas is seeing strong double-digit percentage growth in its First-Aid and Fire business, with plenty of runway, RBC Capital said in a research note after the Q3 report. RBC raised its price target to 725 from 675, keeping an outperform rating.
Last week, CTAS continued a move off its 50-day average that flashed an early entry on May 3, as the stock broke above its 21-day exponential average. CTAS rose 0.6% to 700.27 on Friday, climbing to within 1% of a 704.84 flat-base buy point.
Cintas announced a 4-for-1 stock split on May 2 that will take effect in September.
PulteGroup Stock
On April 23, PulteGroup posted Q1 EPS growth of 32% to $3.10 as sales grew 10% to $3.949 billion. That followed a 10% pullback in EPS in Q4 and 15% sales decline, pinched by surging mortgage rates.
After the results, Raymond James analyst Buck Home raised his PHM stock price target to 135 from 120, keeping an outperform rating. He said the results show that large public homebuilders are able to weather "higher for longer" interest rates.
In the earnings statement, CEO Ryan Marshall highlighted "powerful incentive programs we can offer" to improve affordability for first-time, move-up and active-adult home buyers. He also cited favorable demand conditions, helped by "a structural shortage of several million homes."
PulteGroup stock rose 0.6% to 117.68 on Friday, finishing about 3% below a 120.74 cup-with-handle buy point. Its RS line is right near its highest level since 2006.
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.
