Editorial StaffGoogle parent Alphabet (GOOGL), Ford (F), J.B. Hunt (JBHT), S&P Global (SPGI) and Arista Networks (ANET) are among top stocks to watch near buy points in an uncertain market.
A new market rally attempt is underway, but it’s not a confirmed uptrend yet. For now, it’s still technically a correction. With the market direction in flux, it’s not a great time to be buying stocks.
One way to find the best stocks is to look at their Composite Rating. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity and relative price performance.
Alphabet, J.B. Hunt and Arista Networks have a 97 rating. S&P Global a 95 and Ford an 88.
Investors generally should focus on stocks with a Composite Rating of 90 or higher. But the rating is only a single metric and investors should take others into consideration when deciding to buy or sell stocks.
Google Stock
Google stock rose 4.3% to 2,960.03 in last week’s stock market action. Alphabet stock has retaken its 50-day line, broken a short trend line and in turn retaken a prior buy point of 2,925.17. The relative strength line, which compares a stock’s performance to that of the S&P 500, has been on a steady upward incline since January, a sign of strength.https://research.investors.com/ibdchartswp.aspx?cht=pvc&type=weekly&symbol=GOOGL
GOOGL stock in on the IBD Leaderboard, IBD’s curated list of leading stocks that stand out on strong technical and fundamental metrics. It’s also on the IBD 50 and Long-Term Leaders list and is the top-ranked stock in IBD’s Internet-Content group. Buying a Long-Term Leader near the 50-day/10-week line is often a sound strategy.
Google stock was a recent IBD Stock of the Day because analysts are bullish on the stock’s performance during the pandemic. The company is benefiting from increased adoption of digital advertising and online shopping amid the pandemic, Phillip Capital analyst Jonathan Woo said in a report earlier this month.
Ford Stock
Ford stock surged 9.6% to 21.45 on Friday, rebounding from its 21-day line and hitting a new high, clearing several weeks of tight action. Friday’s move offered buying opportunities, but the uncertain market made that higher risk. Ford stock now seems somewhat extended given the overall climate.https://research.investors.com/ibdchartswp.aspx?cht=pvc&type=weekly&symbol=F
Like Alphabet, Ford’s relative strength line has been holding near highs. On Friday, that RS line hit a new high as Ford stock raced higher.
The company’s sales are doing well even amid inflation worries. On Dec. 2, Ford reported a 5.9% jump in year-over-year auto sales for November as sales of its truck and hybrid vehicles grew. With the gains, Ford said that it was the bestselling automaker in the U.S. for the third month in a row.
Ford had closed its reservation book for the upcoming F-150 Lightning after reaching 200,000. The all-electric version of America’s bestselling truck will begin deliveries in late spring.
Ford announced Friday afternoon that it aims to make 300,000 Mustang Mach-E crossovers for North America and China by 2023. Ford exceeded its goal of 50,000 deliveries in 2021. Meanwhile, Ford is about to start local deliveries of its made-in China Mach-E.
Arista Networks Stock
ANET stock rallied 7.8% to 130.9 last week. Shares moved above the 21-day moving average on Tuesday, giving investors an early buying opportunity. As of Friday’s close, Arista Networks stock has a flat base with a 134.24 buy point.
Arista stock gapped up after earnings last month. The cloud computer networking company was able to hold on to those gains despite a choppy market.https://research.investors.com/ibdchartswp.aspx?cht=pvc&type=weekly&symbol=ANET
S&P Global Stock
Shares rose 3.9% to 473.67. The stock is just below a 476.27 buy point in a flat base in a larger base-on-base formation. A base-on-base formation happens when a stock forms a base but doesn’t rise much higher from a buy point. That can happen when the market is selling off.
S&P Global is on the IBD Long-Term Leaders watchlist.https://research.investors.com/ibdchartswp.aspx?cht=pvc&type=weekly&symbol=SPGI
J.B. Hunt Stock
Shares gained 3.6% to 198.56 last week. J.B. Hunt is in buy range after bouncing off its 10-week line. It’s still just 3.2% above that key level. The trucking stock is working on a new consolidation with a 202.81 entry point that could gives investors another buying opportunity.https://research.investors.com/ibdchartswp.aspx?cht=pvc&type=weekly&symbol=jbht
The health of the supply chain is a major issue heading into the holiday season, putting trucking companies in the spotlight.
J.B. Hunt is also getting attention for its environmental practices. The company ranks highly on Dow Jones ESG data in air quality protection measures, greenhouse gas emissions, employee health and safety, and critical incident risk management.
Source: Investors.com
