Gene-editing company Vertex Pharmaceuticals and entertainment giant WWE lead the five stocks to watch for the week ahead. Cardinal Health, Cameco and Carlisle round out the list.
These stocks' relative strength lines are at or just below highs. And they are either in bases or near key support levels.
Vertex and Cardinal Health are members of the IBD Leaderboard watchlist, as well as the IBD 50 list of top growth stocks.
However, Fed rate hikes, soaring yields and a weakening global economy are pushing the bear market to fresh lows. Even relative winners struggle to make headway in such an environment. Investors should be cautious of any buys.
Vertex Stock
Vertex is a Boston-based biotech that has dominated the cystic fibrosis space and is still seeing growth there. But it's looking to expand into new fields.
On Tuesday, Vertex and Crispr Therapeutics announced that the FDA granted a rolling review for their potential gene-editing therapy treatments for sickle cell disease and transfusion-dependent beta thalassemia (TDT).
VRTX stock rose Tuesday on the news, then broke above its 50-day moving average and downward-sloping trendline on Wednesday. Even better, it held up well the rest of the week as the market sold off hard.
Vertex stock is flashing an early buy signal, but the bear market makes that riskier.
Shares dipped Friday but still rose 2.15% for the week to 289.54. Vertex stock is up 30% in 2022.
VRTX stock has an official 306.05 flat-base buy point in MarketSmith. Its RS line has soared to new highs. Vertex holds a perfect 99 Composite Rating, which combines a number of key technical indicators into one score.
Cardinal Health Stock
Cardinal Health manufactures and distributes pharmaceuticals and medical and lab equipment, as well as provides data solutions for health care facilities. The Dublin, Ohio-based company works with more than 90% of U.S. hospitals and 60,000 pharmacies across the country. CAH stock is up roughly 30% so far this year despite five straight quarters of declining earnings, which ended with the company's latest results.
CAH stock bounced from its 50-day line and top of its prior cup-with-handle base on Tuesday and Wednesday. Shares got above the 21-day exponential moving average on Wednesday and broke their trendline, but pulled back some on Thursday and Friday. Cardinal Health stock rose nearly 1% for the week to 66.68 but is still in the bottom half of its range. Shares closed above the 50-day line but just below their 10-week line.
CAH stock is technically trading in the buy zone from a cup base cleared in mid-August. But investors likely want to focus on a decisive move above a trendline, or for the current consolidation to turn into a proper base.
CAH stock has a 95 Composite Rating.
WWE Stock
WWE was the IBD Stock Of The Day for Thursday. The entertainment and wrestling giant sits on three straight quarters of earnings growth and five straight quarters of revenue growth despite executive controversies and shake-ups. WWE stock is up nearly 40% year-to-date and shows a 12-month gain of 22%.
After hitting resistance at its 50-day line for several days, WWE stock rose slightly Friday to clear that key level. Shares briefly cleared an early entry above 70.62, but ended at 70.17. WWE stock rose 3.25% for the week.
The official buy point is 75.33 for its flat base.
WWE stock broke out of a cup-with-handle base in mid-June and rose 28% before basing again.
WWE's Relative Strength Rating is at a new 52-week high of 95. WWE stock has an EPS Rating of 97 following its strong quarterly earnings growth and a muscular 95 Composite Rating.
Carlisle Stock
Carlisle designs and manufactures products and materials for a number of industries. The Scottsdale, Ariz.-based company produces fiber-optic cables and electronic equipment for commercial aerospace and military use, medical devices, construction materials and manufacturing equipment. Carlisle posted accelerating earnings and revenue growth over the past five quarters.
CSL stock is trading below its 50-day and 21-day lines but finding support at the top of its old base. Shares rose 2.6% for the week after tumbling roughly 6% in each of the prior two weeks.
Shares are up 15% so far this year and have consolidated twice. CSL stock is trading in a buy zone as it works on a new consolidation. It has a buy point of 275.23 for its current pattern.
Carlisle's earnings ballooned an average of 98.4% over the past five quarters, earning it a 97 EPS Rating. CSL stock has a Composite Rating of 94.
Cameco Stock
Cameco is the world's largest publicly traded uranium company based in Canada and accounts for roughly 18% of the global uranium production. The company posted positive earnings and revenue growth for the past two quarters, reversing a trend of negative results. And CCJ stock popped in late August on news that Japan is restarting its idle nuclear power plants. Expectations that Germany could temporarily extend a few nuclear plants past year-end also has helped recently.
CCJ stock is up roughly 21% so far this year. Shares are trading about 15% to the buy point of 31.39 for its cup-with-handle base, which formed after CCJ stock broke out of its double-bottom base in March.
CCJ stock fell just below its 10-day, 21-day and 50-day lines on Friday but is still holding above its 200-day moving average. Shares rose 4.8% to 26.51 for the week. A decisive move above Friday's high of 27.59 could offer an aggressive entry within the deep handle.
Carlisle has a RS Rating of 95 with its relative strength line at a year high. And the company has a Composite Rating of 85.
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