S&P 500 components Dexcom, Blackstone and Royal Caribbean lead a list of stocks that also include CyberArk Software and Neurocrine Biosciences that are in focus this week.
The stock market rally saw the major indexes hit record highs as the Federal Reserve stuck to projections for three rate cuts in 2024. Fed chief Jerome Powell signaled that the S&P 500 rally hasn't yet gone on far enough and long enough to become a focus of monetary policy.
With that backdrop, a number of stocks flashed buy signals during the week.
However, with the S&P 500 slightly extended, investors should remain prudent with exposure. With that in mind, here are five stocks, including three S&P 500 plays, to watch this week. Neurocrine Biosciences is on IBD Leaderboard and on SwingTrader while CyberArk stock on the Leaderboard watchlist. Royal Caribbean stock is on the IBD 50.
S&P 500: Dexcom Stock
DexCom shares edged down 0.2% to 133.18 during market action Friday. On the week, the S&P 500 component added 2.1% as it works on a 15.7% gain in March.
Dexcom stock is currently in a flat base with an official buy point of 132.03, according to MarketSurge analysis. The March 7 high of 137.93 could be seen as a high handle alternative entry for DXCM shares.
S&P 500 medical technology stock Dexcom spent most of February below its 50-day moving average but found support at its 200-day line. DXCM shares surged nearly 6% on March 1, bouncing from the 200-day moving average and propelling it back above its 50-day line.
Dexcom specializes in a wearable, continuous glucose monitoring (CGM) system for folks with Type 1 or 2 diabetes, ages two and higher. The sensor measures glucose levels just beneath the skin and sends readings to a smart device in real-time, without finger pricking.
On March 6, shares gapped up above the buy point as the FDA OK'd a new CGM system that can be sold over the counter and be sold beyond diabetics.
Medical related plays tend to do well in tricky markets and economic conditions because government and private insurance covers the vast majority of health-care costs, making them recession-resistance.
S&P 500 stock DCXM ranks second in IBD's Medical-Products industry group. DexCom stock has a 92 Composite Rating out of 99. The S&P 500 stock has a 77 Relative Strength Rating. The EPS Rating for the S&P 500 stock is 98 out of 99.
CyberArk Software Stock
CyberArk stock dipped 0.7% to to 268.14 Friday. Shares gained 3.5% on the week, rebounding from the 10-week line, albeit in light volume. CYBR stock now has a 283 consolidation buy point. Investors could use Thursday's high of 277.97 as an early entry.
The stock rebounded from the 10-week line, but in light volume. CYBR shares is on track to have a new base after Friday action with a 283 buy point. Aggressive investors could use 271.99, the stock's short-term high, as an early entry.
The cybersecurity firm is focused on the interoperability of identity security products amid corporate demand for broader security platforms. The company has an end-to-end identity security platform that touches almost every potential identity-related use case in the marketplace, according to analysts. It's main rivals are Okta, (private equity firm) Thoma Bravo and Microsoft.
CyberArk stock briefly dopped below its 50-day moving average Feb. 21 after Palo Alto Networks reported fiscal second-quarter earnings and revenue. However, CYBR slashed intraday losses. Since then, it's largely found support at a rising 21-day line.
CYBR stock has a best-possible 99 Composite Rating and a 94 Relative Strength Rating. The EPS Rating for the stock is 82 out of 99.
S&P 500: Blackstone Stock
Blackstone stock dropped 2.9% on Friday, but the S&P 500 stock gained 2.3% on the week to 127.86. Shares on Thursday climbed 3.05% to 131.66, just topping an official 131.29 buy point from a cup-with-handle base.
BX shares' advance around a buy point comes after the stock rose more than 3% on Wednesday, bouncing from the 50-day moving average.
Blackstone is the world's largest alternative asset manager with $1.04 trillion in assets under management as of Dec. 31, up 7% in 2023 to a record high. It specializes in "alternatives," the likes of real estate, private equity and infrastructure investments, rather than conventional stocks and bonds.
At the end of 2023, the firm had around 12,500 real estate assets and more than 230 portfolio companies. Blackstone crossed the $1 trillion threshold in June 2023, becoming the first alternative asset manager to do so.
The company was profiled by IBD's New America earlier this month.
After a two years of sharply lower profit, analysts expect Blackstone to see a big EPS boost in 2024 and 2025.
Along with S&P 500 component Blackstone, Blue Owl, Ares Management, BlackRock, Apollo Global Management and KKR — all part of the IBD Finance-Investment Management group — made bullish moves in recent days.
Ares, Owl Capital and KKR are on the IBD 50. Owl Capital was Thursday's IBD Stock Of The Day.
Blackstone stock has 75 Composite Rating out of 99. The S&P 500 stock has an 82 Relative Strength Rating and an EPS Rating of 42.
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Neurocrine Biosciences Stock
NBIX shares fell 1.6% Friday, but bounced off lows near the 50-day line. NBIX climbed 1.7% on the week to 141.43. On Thursday, Neurocrine Bio stock climbed 2.2% to 143.74, enough to clear a 143.35 flat-base buy point, according to MarketSurge.
Investors know Neurocrine best for its tardive dyskinesia treatment, Ingrezza. Tardive dyskinesia was a relatively unknown condition when Ingrezza launched in 2017. The movement disorder is a side effect of some antipsychotics. Now, diagnosis rates are on the rise.
However, enthusiasm is also building for Neurocrine's early-stage efforts to target muscarinic receptors in the brain. Doing so could lead to new treatments for other movement disorders, schizophrenia and central nervous system conditions.
Meanwhile, the Food and Drug Administration is currently reviewing Neurocrine's drug, crinecerfont, in patients with congenital adrenal hyperplasia, or CAH. This condition limits the adrenal glands from making certain hormones, impacting a child's normal development and growth.
Analysts expect the biotech play's 2024 earnings to more than double compared to a year with sales increasing 17%, according to FactSet.
NBIX stock has a best-possible 99 Composite Rating out of 99 with a Relative Strength Rating of 89. The EPS Rating is 93 out of 99.
S&P 500: Royal Caribbean Stock
Royal Caribbean shares edged up 0.2% Friday. On the week, RCL gained 5.5% to 136.02, advancing above an official 133.77 buy point from a cup base. The buy zone extends to 140.46.
It was the S&P 500 component's fifth consecutive weekly gain. Royal Caribbean stock is up more than 10% in March and has advanced around 5% in 2024.
Royal Caribbean closed the door on 2023 in early February, topping fourth-quarter earnings but missing on revenue. The cruise line operator saw earnings in 2023 skyrocket to $6.67 per share, up from a $7.50 per share loss a year earlier. RCL revenue in 2023 grew 57% to $13.9 billion.
The company expects 2024 earnings between $9.90-$10.10 per share while analysts forecast EPS of $9.96.
Meanwhile, rival cruise line giant Carnival reports first-quarter earnings and revenue on Wednesday. Analysts expect a loss of 17 cents per share, down from a 55-cent loss a year ago, with revenue increasing 20% to $5.33 billion.
On Dec. 21, 2023, Carnival reported better-than-expected fourth-quarter earnings and revenue, sending cruise line stocks, including RCL, higher.
"We entered the year with the best booked position we have ever seen, and now have nearly two-thirds of our occupancy already on the books for 2024, at considerably higher prices," CCL Chief Executive Josh Weinstein said in December.
"We continue to experience strong bookings momentum across the board, with our European brands showing remarkable strength."
S&P 500 stock RCL has a 98 Composite Rating out of 99. The S&P 500 stock has a 93 Relative Strength Rating and an EPS Rating of 82.
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