Deere (DE) and Dexcom (DXCM), which has a small new glucose monitoring system, lead this weekend’s watch list of 5 stocks near buy points. All of the stocks have sales momentum that’s expected to continue, despite some economic uncertainty. Vertiv (VRT), which supplies data centers with power and thermal management products, digital-ad verification leader DoubleVerify (DV), and McDonald’s fries supplier Lamb Weston (LW) round out the list.
All 5 watch-list stocks have recently been featured as IBD Stock Of The Day. Deere stock is part of the flagship IBD 50 list of leading stocks.
On Friday, Deere posted fiscal Q1 results highlighted by 124% EPS growth and a second straight quarter with revenue growth above 30%. Deere boosted 2023 guidance for net income to a range of $8.75 billion-$9.25 billion from $8 billion-$8.5 billion.
Sales of Deere’s production and precision agriculture equipment should rise about 20% this year, lifted by 14% price increases. Construction and forestry equipment sales are expected to grow 10%-15%, thanks in large part to 9% price hikes.
With demand seen outpacing industry capacity, dealer inventories are expected to remain lean, lowering risk to the outlook.
Deere stock jumped 7.5% to 433.31 on Friday, rising back above its 50-day moving average.
After November’s attempted breakout from a 7-month consolidation, Deere stock has etched out a flat base over the past 11 weeks. The buy point is 448.50. However, Friday’s convincing move past its 50-day line offers an aggressive early entry.
Dexcom just launched U.S. availability of its G7 continuous glucose monitoring system for diabetes patients on Friday. The small patch that can be worn on the back on the arm and deliver data to an app is 60% smaller than its prior version.
The company said on Monday that the device has been approved for Medicare coverage. The European launch last fall is off to a strong start. Dexcom says it’s converting users of other body-worn devices, as well as adding patients who previously relied on finger pricks and test strips.