S&P 500 stocks Nvidia (NVDA) Costco Wholesale (COST) and General Electric (GE), along with Urban Outfitters (URBN) and Datadog (DDOG), are in focus this week.
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The stock market is still in a confirmed uptrend as the rally continued Friday after a pullback Thursday. The S&P 500 and Nasdaq composite snapped long win streaks on Thursday, but rebounded Friday to close higher for the week.
Meanwhile, leading stocks continue to flash buy signals or set up. Technology has let the way, but a variety of sectors are showing strength, including aerospace and retail.
These five stocks, including three S&P components, are trading around buy points. Nvidia stock and Datadog stock are on IBD Leaderboard and the IBD 50.
S&P 500: Nvidia Stock
Nvidia stock rose nearly 3% to 483.35 in Friday’s market action, climbing 7.4% for the week.
NVDA stock has formed a double-bottom base and topped the 476.09 buy point on Friday, according to MarketSmith analysis. The buy zone for Nvidia stock extends to 499.89, according to IBD Leaderboard.
The relative strength line has also hit a new high on a weekly chart.
Thursday marked Nvidia’s first up day in above-average volume in more than two months. However, the weak close offset some of that.
NVDA stock has gained 230% in 2023, easily leading the S&P 500.
Nvidia reports third-quarter earnings and revenue on Nov. 21. Analysts expected EPS to balloon 478% to $3.35. Sales are forecast to skyrocket 172% to $16.11 billion.
Meanwhile, Nvidia will release new chips for the China market, according to various sources, after the U.S. government curbed exports of its high-end AI chips.
The S&P 500 stock ranks first in IBD’s Electric-Semiconductor Fabless industry group. NVDA has a 99 Composite Rating out of 99. Shares of Nvidia have a 99 Relative Strength Rating, an exclusive gauge for share-price movement. The EPS Rating for the S&P 500 component is 93.
Urban Outfitters Stock
URBN shares advanced 1.4% to 35.40 on Friday. On the week, Urban Outfitters stock declined 1.1%. Shares have formed a cup-with-handle base with a 36.10 buy point, according to MarketSmith analysis.
Urban Outfitters stock has gained 48.5% in 2023, outperforming the S&P 500. The multinational retailer reports third-quarter earnings and revenue on Nov. 21.
Analysts expect profit to grow more than 100% to 81 cents per share with sales increasing 8% to $1.26 billion. That would mark the fourth-straight quarter of accelerating earnings growth.
Same-store sales are expected to increase 4.9%, equal to Q2 and a larger increase compared to last year. This comes as analysts have speculated that U.S. consumers are likely to curtail spending in the latter part of 2023, with apparel and footwear being the most likely areas of pullback.
The stock has a 97 Composite Rating out of 99. URBN shares have a 93 Relative Strength Rating. The EPS Rating for Urban Outfitters stock is 99.
S&P 500: Costco Stock
Costco stock popped 2.5% to 577.12 on Friday, gaining 2.9% for the week. The S&P 500 stock is above a 571.16 buy point from a flat base, and is back above its 50-day moving average.
Costco reports November sales and revenue on Nov. 29 and fiscal first-quarter earnings on Dec. 14.
But Walmart (WMT), which competes with COST via Sam’s Club, and BJ’s Wholesale (BJ) will both announce Q3 earnings and revenue in the coming week.
Back in September, the S&P 500 component reported fourth-quarter results amid a wider downturn for retailers and mixed performance for discounters.
Adjusted earnings climbed nearly 16% to $4.86 per share adjusted, compared to an 18% gain the prior quarter. Total revenue grew 9.5% to $78.94 billion, ending a streak of decelerating growth for the past four quarters.
Meanwhile, increasing the price of Costco memberships is “a question of when, not if,” CFO Richard Galanti said in September. The company last increased its membership fees in June 2017.
The S&P 500 stock has a 90 Composite Rating out of 99. COST shares have an 87 Relative Strength Rating. The EPS Rating for the S&P 500 component is 95.
Datadog Stock
DDOG shares advanced 3.4% to 103.65 Friday and surged more than 26% on the week. Datadog stock broke out above a 102 buy point in what appears to be a double-bottom base, according to MarketSmith analysis. The buy range extends to 107.10, according to IBD Leaderboard.
Datadog reported better-than-expected third-quarter earnings and revenue on Nov. 7, sending DDOG shares to a recent high of 104.43. Investors could wait for DDOG to clear this high before adding DDOG to their portfolios.
DDOG is trading around 15% off its 52-week high and just under 50% its all-time peak near 200. Datadog provides a cloud-based monitoring and analytics platform. The company turned its first annual profit in 2020 and analysts expect 2023 earnings to grow 53% to $1.50 per share.
On Nov. 7, Datadog reported Q3 EPS surging 96%, the second straight quarter of faster growth. Revenue rose 25% to $548 million. The software company also guided higher for Q4.
S&P 500: General Electric Stock
General Electric stock gained 1.9% to 115.27 on Friday. On the week, the S&P 500 component added 5.8%. GE has an official 117.96 flat-base buy point, according to MarketSmith. But it’s buyable from clearing the Oct. 24 intraday high of 114.89.
A weekly chart shows GE’s relative strength line at a five-year high. While reporting better-than-expected Q3 results on Oct. 24, GE raised the full-year outlook for its aerospace division to about $6 billion in operating profit, up from prior guidance of $5.6 billion to $5.9 billion. Organic revenue growth is seen topping 20%.
GE added on Oct. 24 that it’s on track to spin off its power and renewable energy unit at the start of the Q2.
Following the spinoff, shares of GE Vernova will be distributed to current holders of GE common stock, which will become GE Aerospace.
On Jan. 4, GE completed the spinoff of GE HealthCare Technologies (GEHC). Since then, GE stock has been among the top performers in the S&P 500, with a 72% gain through Wednesday.
In Q3, GE Aerospace saw orders grow 34% and revenue 25%, led by its commercial engines and services business amid the ongoing rebound in travel. Defense revenue rose 8%.
General Electric was the IBD Stock Of The Day on Thursday.
The S&P 500 stock has a 92 Composite Rating and a 95 Relative Strength Rating. GE also has a 76 EPS Rating.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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