Tesla rival BYD and Dow Jones giants Amazon.com and JPMorgan Chase along with KB Home and TechnipFMC are in focus this week.
The stock market rally saw a major role reversal Thursday, with megacaps and the Nasdaq tumbling with small caps and many other parts of the market soaring. Friday showed a broad advance.
These five highlighted stocks, all from different sectors, are showing signs of strength.
JPMorgan's financials signal the start of earnings season and investors should be keeping tabs on relevant portfolio results.
In these five stocks, KB Home is on SwingTrader and was Thursday's IBD Stock Of The Day. Amazon stock is on the IBD Leaderboard list and the Dow Jones stock is also an IBD Tech Leader.
BYD Stock
Shares of China's auto giant jumped 4.9% to 31.51 on the week.
BYD stock has cleared a 30.84 handle buy point in a 40% deep, 11-month base, according to MarketSurge analysis. The Chinese EV and battery giant also topped a long-term trendline going back to the mid-2022 all-time high.
JPMorgan sharply raised its BYD stock price target Thursday, predicting its EV sales will rise to 6 million in 2026, from just over 3 million in 2023. That would make it among the world's biggest automakers.
On Monday, BYD announced plans for a plant in Turkey, a week after its Thailand factory opened.
Tesla Extends Huge Run; BYD In Buy Zone Amid Big Overseas Move
BYD will build a $1 billion electric-vehicle factory in Turkey. Along with a planned site in Hungary, BYD is in position to eventually avoid or lower steep new EU tariffs on imported Chinese cars.
BYD sells fully electric battery vehicles (BEVs) and plug-in hybrids (PHEVs) from around $10,000 to $150,000, with a wide range of models. PHEVs have taken the lead in 2024, reflecting global demand for hybrids and BYD's next-generation hybrid system.
It's refreshing much of its lineup, while adding several new models. It's stepping up driver-assist rollouts on models.
KB Home Stock
Shares of KBH rallied 3.2% Friday to 76.14. On the week, KB Home stock surged 15.6% as homebuilders broadly rallied on Thursday's surprisingly soft consumer price index, lifting hopes for rate cuts sooner rather than later.
KB Home stock cleared a flat base pattern with an official 74.66 buy point, according to MarketSurge.
KBH on Thursday leapt more than 10%, moving above its 50-day moving average, breaking a downward-sloping trendline and clearing some short-term levels.
On July 9, KB Home stock fell to 65.32, its lowest level since May. KBH shares have gained more than 20% in 2024.
Homebuilders for more than a year have said that high rates have pinched housing affordability. KB Home has turned to incentives to drum up demand. However, with mortgage rates falling on the prospect of rate cuts, more people could be looking at purchasing homes without incentives.
Late last month, KB Home received a handful of modest price target hikes from analysts following better-than-expected Q2 earnings.
Analysts forecast full-fiscal year earnings growing 19% to $8.35 per share with revenue increasing 7% to $6.84 billion.
The IBD-tracked Building-Residential/Commercial industry group surged 60% in 2023. This year, the 22 stocks in the group have collectively advanced more than 12%.
KB Home stock has an 88 Composite Rating out of a best-possible 99. Shares have a 91 Relative Strength Rating and a 94 EPS Rating.
Dow Jones: Amazon Stock
Amazon edged down 0.3% to 194.49 Friday. For the week, the Dow Jones stock declined 2.75%.
But the e-commerce and cloud-computing giant is trading within a buy range and holding the 21-day moving average. Shares cleared a flat-base buy point of 191.70 late in June.
There is further upside ahead for Amazon stock, helped by its high-margin cloud and advertising businesses, an analyst recently said.
Dow Jones: Is Amazon Stock A Buy Right Now?
Jefferies analyst Brent Thill reiterated a buy rating on Monday for Amazon stock and upped the firm's price target for AMZN to 235, from the previous 225.
Amazon is among the world's most valuable companies. However, the Seattle-based firm is facing increased competition for digital sales from brick-and-mortar titans Walmart and Target, as well as upstarts such as Temu and Shein.
Meanwhile, the Amazon Web Services, or AWS, cloud business is battling Microsoft to be the leading cloud-platform for generative artificial intelligence.
Amazon has not set a date for the release of its second quarter results, but they are expected to come in late July. Last year, Amazon reported Q2 results on Aug. 3.
The Dow Jones giant has a 90 Composite Rating out of a best-possible 99. Amazon stock has an 88 Relative Strength Rating and an 81 EPS Rating.
TechnipFMC Stock
FTI stock fell 1.1% on Friday but advanced 2.6% to 26.27 for the week. TechnipFMC stock topped a 26.76 buy point on Thursday, but has dropped back below that. That's either an early entry in a flat base or the official buy point in a cup-with-handle base.
The Houston and Newcastle, U.K.-based company reports second-quarter earnings and revenue on July 25, along with larger oilfield service firm Baker Hughes.
TechnipFMC has already inked three new contracts with major oil firms BP, Shell and Petrobras this year.
Organized in two business segments — Subsea and Surface Technologies — TechnipFMC provides fully integrated projects, products and services for the traditional and new energy industries. It works with oil and gas firms to develop energy resources while helping its partners reduce their carbon footprints.
On July 19, Halliburton and SLB report earnings. Forecasts have SLB EPS increasing 15% while Halliburton is expected to see a 4% earnings jump, according to FactSet.
Meanwhile, the 29 stocks in the IBD-tracked Oil & Gas-Field Services industry group have collectively advanced 6.6% this year.
U.S. oil prices have also increased to around $83 per barrel, gaining around 5% in July and are now up more than 10% in 2024.
TechnipFMC stock has a 93 Composite Rating out of 99, a 90 Relative Strength Rating and an 80 EPS Rating.
Dow Jones: JPMorgan Chase Stock
JPMorgan stock edged up 0.1% to 204.94 for the week, but drifted back below a 205.88 flat-base buy point on Friday.
On Friday, the Dow Jones banking giant reported better-than-expected earnings and revenue. But net interest income grew less than expected, with its full-year NII forecast just below consensus. Shares fell as low as 202.10 Friday morning before paring losses.
Shares on July 3 hit a record high 210.38. The Dow Jones stock has rallied around 20.5% in 2024.
The Dow Jones stock has a 94 Composite Rating out of 99, an 87 Relative Strength Rating and an 88 EPS Rating.
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