Lockheed Martin (LMT), Target (TGT) and property REIT stock Extra Space Storage (EXR) rank among this week’s top stocks to watch, amid rising interest rates and inflation. Paychex (PAYX) and Weyerhaeuser (WY) also make the cut.
Extra Space Storage, an equity REIT, and its peers are acting well while the stock market wilts again. They remain above their 50-day moving averages while the S&P 500 has undercut that key support level.
EXR stock is in buy range while Weyerhaeuser, another REIT, is near a buy point. Target and Lockheed Martin continue to work buy points. Paychex has fallen below an entry but still has positive qualities. Bear in mind that this is a time to be building watchlists for the next uptrend rather than buying stocks.
IBD Live: A New Tool For Daily Stock Market Analysis
On a weekly MarketSmith chart, the relative strength lines for Extra Space Storage and Weyerhaeuser, both REIT stocks, are hitting bullish new highs, indicated by a blue circle at the end of their RS lines. The RS lines for Paychex and Lockheed Martin are just below recent highs.
A rising RS line means that a stock is outperforming the S&P 500 index. It is the blue line in the charts shown.
Stock Market Action: Watch The RS Line
The relative strength line is a quick way to spot winners in any market — up or down.
The Relative Strength At New High stocks list is a great place to look for quality names with strong RS lines. IBD’s stock research platform MarketSmith has a screening tool that identifies stocks with RS lines making new highs.
In addition, the best growth stocks have a Composite Rating of 90 or better, out of a best-possible 99. The IBD Composite Rating combines key fundamental and technical metrics in a single, easy-to-use score.
Most of the stocks to watch this week meet that bar. EXR stock leads with a superior Comp Rating of 97. Paychex and Target enjoy a 95 each. Weyerhaeuser bears a 93 and Lockheed earns a still-strong 86.
Extra Space Storage rallied in three of the past four weeks, regaining its 10-week line. EXR stock shows a 215.01 buy point from a…