he stock market rally continues to demonstrate broad-based strength. Investors should look across various sectors for buying opportunities. wingstop (wing), Lam Research (LRX), halliburton (HAL), boeing (BA) and JD.com (JD) are near all purchase points.
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Wing Stock and JD.com are showing early entries, while oil giant Halliburton is in the buying range. Lam Research is right down to a buy point. Boeing, after a great run, has formed a handle on a large, long consolidation. Earnings for Halliburton, Boeing and Lamm Research are out of the way.
wing stock
Wingstop was Thursday’s IBD Stock of the Day. The Wing Takeout and Delivery chain was added to the IBD 50 list of top-performing stocks this week.
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Wing stock gained 11.4% to 157.88 last week.
The Dallas-based aviation-themed chain’s earnings and sales growth soared over the past two quarters, up 55% in Q2 and 41% in Q3. For its fourth-quarter earnings on Feb. 22, analysts expect Wingstop’s earnings to jump about 71% to 41 cents per share, amid the company’s implied guidance of 37-39 cents. Sales jumped 41% to $100.8 million.
Wing stock is in a “consolidation,” a catchy term for attractive chart patterns that don’t fit the proper basis definitions. According to MarketSmith, 170.97 is a buy point in the current trading pattern.
Investors can use Thursday’s push above Wingstop’s 50-day moving average as an aggressive entry opportunity. A close below the 50-day line would mark the exit point.
Wingstop’s relative strength line has declined slightly after hitting highs in early January, but has gained momentum over the past several sessions. WING stock has an RS rating of 89 out of 99, which indicates that it has outperformed most of its peers over the past 52 weeks. The company’s strong earnings translate into a 95% EPS rating. And it has an 87 composite rating, which combines several technical indicators into one easy-to-read score.
lrcx stock
Fremont, California-based Lam Research is on the IBD Tech Leaders stock list and the IBD Big Cap 20 list. With earnings and sales upbeat in each of the past three quarters, the chip-equipment maker beat quarterly views late Thursday.
For Q2, Lam’s earnings rose 26% to $10.71 per share on 25% revenue growth to $5.3 billion. But Lamm provided a weak guidance because its customers, especially memory-chip makers, have been careful to spend. In response, Lamm announced plans to cut 1,300 jobs, or about 7% of its workforce.
For its third quarter, Lamm forecast earnings down 12% to $6.50 per share on a 6% decline in revenue to $3.8 billion. Earnings on $4.35 billion in revenue are well below Wall Street’s outlook of $7.78 per share.
Lam Research stock is trading at a lower base and trading above its 50-day and 200-day moving averages. Bottoming bases are similar to cup bases except that they are often formed within a deeper consolidation.
LRCX stock reclaimed its 50-day and 200-day moving averages at the beginning of the month, and bounced off its 10-day line on January 20. Its current base is 504.65 buy point. But a move above its Thursday high of 498.94 offers an aggressive early entry opportunity for investors.
Despite poor guidance. LRCX stock rose 2.2% to 482.88 for the week. Shares are up 15% so far in 2023.
HAL stock
Halliburton is one of the world’s largest hydraulic fracturing operators. The Texas-based oil and natural gas services giant reported positive earnings and revenue growth for the past seven quarters, fueled by rising energy prices and accelerating drilling production.
Fourth-quarter earnings, released on January 24, doubled to 72 cents per share, while revenue rose 30.5% to $5.6 billion. It beat analyst earnings estimates of 67 cents per share and was in line with sales estimates.
HAL stock is trading in a buy zone following its earnings report thanks to its 30-week, cup-with-handle base. Shares broke down on January 6 after crossing their 40.09 buy point. The buy zone, which is 5% above the buy point, runs up to 42.09.
The shares have 89 RS rating due to slippage of relative strength line from mid-January highs. Halliburton has an 80 EPS rating and a 99 composite rating.
HAL stock fell 0.4% to 40.52 for the week, but rebounded from the 10-week line on Wednesday and ended the week in buy territory.
boeing stock
Airplane maker Boeing surprised investors with a big fourth-quarter loss on Wednesday, as rising costs slowed jet deliveries from recovering. Boeing reported a core loss of $1.75 per share, while revenue rose 35% to $19.98 billion. This was well short of Wall Street’s estimated earnings of 30 cents per share and $20.18 billion in revenue.
The commercial airplane unit reported a negative operating margin of 6.8%, reflecting “unusual costs and period expenses, including research and development”. Still, Boeing will deliver 480 airplanes in 2022 and receive 774 net new orders in 2021, compared to 340 deliveries and 479 new orders.
Boeing held steady at 2023.
Boeing stock has been boosted from its November 2022 breakout to 173.95 after a strong rally in late September. The recent halt can be seen as a handle for a massive consolidation early last year. In that case, BA stock has a 216.74 buy point just above the peak of the handle.
Boeing stock has a low EPS rating of 25 after six consecutive quarters of losses. However, its relative strength line is near the high since early January and has a 94 RS rating. Boeing Stock has a 73 composite rating.
BA stock is up 2.1% last week and about 11% so far this month.
JD Stock
China-based online retailer JD.com has been consistently profitable over the years, with annual growth since 2018. Earnings have been on the rise for the last two quarters and were up 80% in the third quarter. But revenue growth, compared to the previous six quarters, fell to 1% for the September-ending period due to pandemic shutdowns and disruptions. However, Chinese stocks have rallied recently after the country reopened and eased Covid restrictions in December.
JD stock is trading at a cup-with-handle base within its deep, dirty consolidation. It currently has a 67.19 buy point as per MarketSmith, with the stock facing a lot of resistance in the 67-68 range over the past 10 months. Arguably now it is offering an aggressive entry by breaking its downtrend handle and bouncing off its 21-day exponential moving average on January 26.
JD stock has a near perfect 98 EPS rating, 93 RS rating and 98 composite rating. JD stock gained about 5.5% last week. Shares are up 13.6% in the last month and 68.5% in the last three months.
You can follow Harrison Miller on Twitter for more news and stock updates @IBD_Harrison,
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