ServiceNow headlines stocks near buy points, backing off an aggressive entry. Meanwhile, XP, Block and Dexcom are above buy points or early entries.
The relative strength lines of most of these stocks are trending higher or improving, though XP is a partial exception. The RS line, the blue line in the charts provided, track a stock's performance vs. the S&P 500 index.
The major stock market indexes continue to made record highs, giving investors a green light, though Friday's tech led reversal might give one pause.
ServiceNow stock
ServiceNow fell 2.1% to 757.68 ast week, but rebounded back above the 50-day line. Shares tried to clear a short trendline on Friday, but pulled back with the market and other AI plays. A move above Friday's intraday high of 777.57 would offer an early entry.
In another week, ServiceNow stock could form a flat base.
ServiceNow was one of the first stocks to break out of the current market rally, which started at the end of October.
The artificial intelligence mania has fueled excitement about AI-exposed chip stocks as well as enterprise software firms. The latter group includes ServiceNow.
ServiceNow has posted earnings growth above 25% and sales growth above 20% in each of the past six quarters, according to MarketSurge.
The software maker earns a best-possible 99 Composite Rating and EPS Rating of 99.
Year to date, ServiceNow stock is up 7.25%.
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XP Stock
The Brazilian brokerage jumped 5.9% last week in heavy volume to 25.31, rebounding from the 200-day. Friday's move above the 50-day offered an aggressive entry.
XP stock has a 27.02 buy point from a cup-with-handle base starting in late August,
One yellow sign for investors: The RS line weakened as the stock slogged through its consolidation. But it's starting to turn up.
The company's brands include XP, Rico, Clear, Infomoney, XPeed and IM+. It distributes a range of financial products and services, such as financial education.
The fintech stock earns a Composite Rating of 95 and an EPS Rating of 94.
XP continues to grow both earnings and revenue at a solid pace.
Year to date, the stock is down 2.9%.
XP was Friday's IBD Stock Of The Day.
Block Stock
Square parent Block has forged a cup-with-handle buy point of 83.29. Friday's strong move above a downward-sloping handle and retaking the original buy point of 80.29 offered investors early entries.
Block stock was Wednesday's Stock Of The Day as it found short-term support after a brief earnings breakout in February. Analysts are focused on Cash App as a growth engine.
Another fintech stock, Block earns a Composite Rating of 97 as well as an EPS Rating of 97.
The company doubled earnings in three of the last five quarters, according to MarketSurge. It also boasts double-digit revenue growth, which has stalled in the three latest quarters at a still-solid 13%.
Year to date, SQ stock is up 4.4%.
Dexcom Stock
Shares of the medical device company soared above a 132.03 buy point from a flat base March 6. The powerful breakout came on earnings.
Dexcom stock remains in the buy zone, which goes to 138.63.
The company makes continuous glucose monitoring (CGM) systems. It also has a new CGM product that also targets non-diabetics. It is poised to enter a new market: obesity.
The medtech stock earns a Composite Rating of 94 and an EPS Rating of 98.
Earnings growth ranged between 4% and 57% in the latest five quarters. Sales growth ranged between 18% and 27%. Those are generally robust numbers. However, Dexcom shows three quarters of slowing earnings growth.
Year to date, Dexcom stock is up 9%.
