S&P 500 giants Meta Platforms, Costco and Eli Lilly along with Comfort Systems and Shift4 are in focus this week.
The Nasdaq lagged last week but the S&P 500 entered a power trend Friday.
All five of the stocks highlighted here have briefly topped buy points and pulled back in recent days as the broader market paused, though FIX stock broke out Friday.
Among these names Costco stock and Comfort Systems are both on IBD SwingTrader.
Comfort Systems stock also belongs to the IBD 50 list of top growth stocks, along with Meta stock, Comfort Systems and Eli Lilly.
S&P 500: Meta Stock
Facebook-parent Meta edged up 0.6% to 521.31 during Friday's market session, down 0.1% for the week but up 9.8% for the month.
The S&P 500 giant touched a 542.81 buy point on Aug. 22, according to MarketSurge pattern recognition. META has retreated since then and is now finding support at its 21-day exponential moving average.
A decisive move from the 21-day line could offer an early entry.
The buy zone for the pattern, which stretches 5% beyond the buy point, extends to 569.95. META stock has rallied 47% so far this year.
Is Meta Stock A Buy As It Hovers Near Key Level?
The Facebook and Instagram parent company at the beginning of the month cleared Q2 estimates with a 73% increase in earnings on 22% revenue growth. Advertising revenue growth also outpaced forecasts.
Meanwhile, Meta has pivoted from the metaverse to focus on its artificial intelligence ambitions. Chief Executive Mark Zuckerberg expects capital expenditures to range from $37 billion to $40 billion this year, with "significant capital expenditures growth" for 2025 as it builds out its advanced data center capacity. Long-term, Zuckerberg predicts Meta will offer fully-automated advertising plans to clients.
Meta stock has a 92 Composite Rating out of a best-possible 99. The S&P 500 component also has a 92 Relative Strength Rating and a robust 97 EPS Rating.
Comfort Systems Stock
Shares of FIX rose 1.8% on Friday and 6.35% in August to 353.52. That's above a 374.73 buy point from a small handle, as well as the top of the base at 352.45.
FIX shares closed above those levels Friday after topping them intraday Thursday.
Comfort Systems was Thursday's IBD 50 Stock To Watch and is an AI-adjacent stock as a cooling play. Data centers have significant air conditioning needs.
Comfort Systems specializes in heating, ventilation and air conditioning, or HVAC products, as well as electrical services for commercial and industrial buildings. It is an umbrella for more than 40 companies, designing and installing these systems for new buildings and replacing outdated ones in older establishments.
On July 25, Comfort Systems earned $3.74 per share on revenue of $1.81 billion, representing year-over-year growth of 94% and 40%, respectively. Bullishly, the company boasts four quarters of accelerating earnings growth.
Year to date, FIX stock has soared 72%, largely on a late January to early March run.
The 13 stocks in the IBD-tracked Building-A/C & Heating Products industry group have collectively gained 30% in 2024, outperforming the S&P 500.
Comfort Systems stock has a perfect 99 Composite Rating and EPS Rating. The stock's Relative Strength Rating is 94.
S&P 500: Costco Stock
Costco shares angled up 0.65% to 892.38 on Friday, part of an 8.6% gain in August. The S&P 500 component has formed a shallow cup with an official 896.67 buy point, according to MarketSurge.
Shares broke out on Aug. 27, and have pulled back just to that entry.
The relative strength line is trending higher, an indicator of the stock's outperformance vs. the S&P 500.
In May, Costco reported its best earnings growth in years: 29%. That accelerated sharply from a 12% gain in Q2. The company will report fiscal fourth-quarter earnings and revenue in late September.
Analysts expect 14.5% earnings growth for the full year and a further 9.6% gain next year, according to FactSet. That would be up from the 2023 level but down from 2021. Costco's fiscal year ends in August.
Despite inflation, the warehouse club continues to grow store visits and e-commerce sales. Costco's gold and silver sales have received attention, though reports suggest profits are low.
In July, Costco announced its standard annual membership fee will go up by $5, the first hike since 2017. The move was much awaited by some analysts and investors.
The S&P 500 giant has a 90 Composite Rating out of a best-possible 99. Shares also have a 91 Relative Strength Rating and an 89 EPS Rating.
Shift4 Stock
Shares of FOUR gained 0.95% on Friday to 83.10, part of a 2.4% gain on the week.
The stock surged in August, advancing 20.8%.
On Monday and Friday, Shift4, which also does business as Shift4 Payments, briefly cleared a cup-with-handle base buy point of 83.64, but failed to close above that level.
Shares arguably are actionable from clearing a downtrend from the handle and the top of the base.
The handle formed after a strong, high-volume run from the Aug. 5 intraday low.
Shift4 is an independent provider of payment acceptance and payment processing technology solutions in the U.S. Its payment processing includes credit, debit, contactless card, and QR pay among other alternative payment methods.
The Allentown, Pa.-based company garners most of its revenue from customers in the hotel and restaurant industries as well as casinos. Shift4 has expanded into sports stadiums, airlines and charities, as well as food and beverage companies.
On Monday, the company announced the acquisition of Givex, a provider of gift cards, loyalty programs and point-of-sale solutions. Shift4 also acquired point-of-sale company Revel Systems for $250 million in June.
On Aug. 8, the company reported a 30% increase in adjusted earnings and revenue for its Q2 results. Analysts expect 2024 earnings will increase 33%, followed by 29% growth in 2025.
Shift4 Payments is a member of the IBD Sector Leaders list. The company was also highlighted Monday as the IBD Stock Of The Day.
The stock has a 96 Composite Rating out of a best-possible 99. Shares have an 87 Relative Strength Rating and a 96 EPS Rating.
S&P 500: Eli Lilly Stock
Eli Lilly stock gained 2.1% to 960.02 on Friday, a record close. In August, LLY shares surged 19.4%
The S&P 500 stock has forged a V-shaped consolidation, trading below a 966.10 buy point, according to MarketSurge chart analysis. LLY hit a record high of 972.53 during intraday trade on Aug. 22.
Eli Lilly recently announced its weight-loss drug, tirzepatide, lowered the risk of developing diabetes by 94%. Last week, Lilly announced a new, lower-cost version of the drug, also branded as Zepbound, which will also boost supply.
Is Eli Lilly Stock A Buy After Weight-Loss Drug Prevents Diabetes?
On Aug. 8, the S&P 500 component earned an adjusted $3.92 per share on $11.3 billion in sales. Earnings skyrocketed 86% and crushed forecasts for $2.74 a share, according to FactSet. Sales advanced 36% and came in north of expectations for $9.97 billion.
Its diabetes and weight-loss drugs Mounjaro and Zepbound — both forms of tirzepatide — beat expectations by $973 million. And Lilly hiked its sales outlook for the year by $3 billion.
Following the second-quarter report, Eli Lilly guided to $45.4 billion to $46.6 billion in 2024 sales. Lilly plans to bolster its production of diabetes and weight-loss drugs later this year. The company also calls for adjusted earnings of $15.10 to $15.60 per share for the year.
The company has also wrapped its acquisition of Morphic Holding for $3.2 billion. The Morphic deal centers on the company's lead asset, an experimental treatment for ulcerative colitis and Crohn's disease.
The S&P 500 stock has a best-possible 99 Composite Rating. LLY shares have a 94 Relative Strength Rating and a 93 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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