Boeing (BA), Monolithic Power Systems (MPWR) and Workday (WDAY) are this week’s top stocks to watch as they work on traditional buy points or offer early entries. Lennar (LEN) and Aehr Test Systems (AEHR) also make the cut.
The stock market is in a correction, making this a time to build watch lists.
Most of this week’s top stocks have relative strength lines that are moving sideways, a sign of resilience in the current volatility. Lennar has an RS line that is starting to trend upward. A rising RS line means that a stock is outperforming the S&P 500.
MPWR stock has found a spot on the IBD SwingTrader.
Both WDAY stock and Monolithic Power belong to the IBD 50 list of top growth stocks.
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Boeing stock has a new flat base with a 221.43 buy point after Friday. Shares have been consolidating for the past month after a huge run from late September. BA stock is below the 50-day line, but a strong move above the 50-day, clearing the March 14 high of 213.56, would offer an early, trendline entry.
BA stock fell 1% to 201.05 for the week. The RS line is not far from a 52-week high.
The Dow Jones aviation and defense giant has surged in 2023 as commercial air travel recovers and its order pipeline swells.
That is fueling Boeing earnings. Analysts polled by FactSet expect Boeing earnings of four cents in 2023, a vast improvement from a loss of $11.06 in 2022. In 2024, Wall Street sees Boeing earnings of $5.80 a share.
The airplane maker had suffered the past several years from the Covid pandemic hit to travel and a series of setbacks to key aircraft, including the 787 and 737.
Boeing screens mixed in terms of key IBD ratings. It earns an IBD Composite Rating of 73, EPS Rating of 26 and RS Rating of 93, all out of a best-possible 99.
The 93 Relative Strength Rating means that BA stock has outperformed 93% of all stocks in IBD’s database over the past 12 months.
Monolithic Power continues to build a deep cup-with-handle with a 530.85 buy point, rising nearly 2% to 488.31 for the week.