Uber Technologies and Taser-maker Axon Enterprise lead this weekend's watch list of five stocks near buy points. They're joined by Swiss athletic shoemaker On Holding, homebuilder M/I Homes and Medpace Holdings, which conducts clinical trials for biotech firms.
The list features three stocks with a superlative 99 IBD Composite Rating in Uber, Axon and Medpace, according to IBD Stock Checkup. That puts them in the top 1% of stocks based on fundamental and technical factors.
Uber is part of the IBD Leaderboard portfolio of elite stocks. Axon is on the flagship IBD 50 list of leading growth stocks. MEDP is part of the IBD Long Term Leaders list that highlights stocks with the reliable earnings growth that make them worthy of buying on constructive pullbacks.
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.
Uber Stock
On Wednesday, Truist analyst Youssef Squali noted that Truist Card Data points to Uber's Mobility and Delivery gross bookings exceeding the consensus forecast. Squali raised his price target for Uber to 94 from 90, keeping a buy rating.
Uber stock vaulted 14.7% to 79.15 on Feb. 14, after the ride-hailing and delivery giant introduced a three-year outlook for bookings to grow in the mid- to high-teens per year as EBITDA swells by "high 30s to 40%" annually. Uber also introduced a $7 billion stock buyback.
Uber was featured as IBD Stock Of The Day on March 22.
Over the past week, Uber dipped 4% to 76.99. Uber has an 82.14 buy point from a de facto flat base, however a move past 81.23 would offer an early entry opportunity.
Axon Stock
Axon stock has been consolidating for the past month after surging 13.8% on Feb. 28 on the strength of its Q4 earnings beat and outlook.
Revenue grew 29% to $432.1 million as EPS surged 60% to $1.12, powered by demand for its latest Taser 10 weapon and software subscriptions.
William Blair analyst Jonathan Ho reiterated his outperform rating after the Q4 report, touting Axon's "relentless focus on innovation" and "the clear improvements it brings both to officer safety and effectiveness."
Axon stock needs another week to complete a flat base with a 325.63 buy point. I
On Holding Stock
On Holding was featured as Thursday's IBD Stock Of The Day as the athletic shoe and apparel brand completes its whipsaw from an earnings shakeout.
The Swiss shoe maker reported a surprise Q4 loss and gave disappointing guidance.
On March 13, following the Q4 report, Evercore ISI lowered its price target for ONON stock to 37 from 40, keeping an outperform rating. The firm inferred that ONON's disappointing Q4 revenue reflected a conservative approach to promotions amid heavy discounting by competitors during the holiday season.
On Holding sees 30% revenue growth this year, the first step on its road to a 26% annual compound growth rate through 2026.
ONON stock rose 1.8% to 35.38 on Thursday, flirting with a 35.58 buy point from a cup-with-handle base, according to a MarketSurge analysis.
M/I Homes Stock
M/I Homes had been taking a breather as other homebuilder stocks such as Lennar, Toll Brothers and DH Horton rallied this year. But that may have changed on Thursday.
MHO stock jumped 4.6% to 136.29. That lifted MHO past a 133.84 early entry, as it cleared a short-term high and a trendline sloping down from its late-December peak.
M/I Homes has an official 140.73 buy point.
The NAHB index of homebuilder confidence rose to 51 in March from 48 in February, rising for a fourth straight month. The index reflects current sales conditions, future sales expectations and buyer traffic.
"New home sales continue to be supported by the lack of existing homes on the market," wrote Oliver Allen of Pantheon Macroeconomics.
While mortgage rates have reversed higher in early 2024, they're still about 100 basis points below the peak last fall, he noted.
"We expect a gradual recovery in demand as long-term rates start falling again."
Medpace Stock
Here's how Jefferies analyst David Windley characterized Medpace's Q4 results in a Feb. 14 note: "Biotech funding is on the mend, employee turnover is down, and MEDP continues to take share."
On top of that, he noted, the favorable 2024 outlook for Medpace stands out because of its "minimal exposure to large pharma," insulating the firm from expected budget cuts.
The only thing not to like is valuation, Windley said, who kept a hold rating on MEDP.
Still, UBS hiked its price target to 480 from 452 on March 8, keeping a buy rating. The firm said 2024 guidance is achievable and sees upside to 2025 results if the biotech funding recovery continues.
MEDP stock has consolidated in a tight range since surging on Q4 results. Recently, MEDP has settled just above its 21-day exponential moving average after finding support. A move past the March 21 high of 419.42 would break a trendline and offer an early entry.
