Your stocks to watch for the coming week are J.B. Hunt Transportation Services (JBHT), Ulta Beauty (ULTA), Costco Wholesale (COST), Regeneron Pharmaceuticals (REGN) and Anthem (ANTM). Those stocks are nearing buy points or early entries.
Most of those stocks have been holding above their 50-day or 21-day lines — where most stocks have hit resistance.
The relative strength lines on these stocks are at or near consolidation or all-time highs. The RS line, the blue line in the charts provided, track a stock’s performance vs. the S&P 500 index. It’s an easy way to spot leading stocks in good markets or bad.
While these stocks are performing relatively well, they likely need the broader market to trend higher, or at least move sideways, to make much headway.
J.B. Hunt Stock
Shares fell 2.7% to 198.35 in last week’s stock market trading. Shares of the trucking firm reversed lower Friday from an intraday high of 207.46. JBHT stock is in a flat base with a 208.97 buy point. Investors could use 207.58, just above the March 3 peak, as a slightly lower entry.
J.B. Hunt stock in recent days got a bounce off its 50-day line.
J.B. Hunt has benefited from higher freight rates, amid an array of global supply-chain snags. But the trucking industry has struggled to attract and retain drivers.
Ulta Beauty Stock
Ulta Beauty stock initially popped Friday following strong earnings, flashing an early entry, but reversed lower to close down 2.9% to 368.51. That’s back below its 50-day line and 200-day, after regaining both key levels earlier in the week.
Investors could now use 389.10 as an early entry — or Friday’s high plus 10 cents. The official buy point is 422.53 from a consolidation that started in early January, though it’s been moving sideways since late August.
The beauty retailer has a 79 Composite Rating and an 85 EPS Rating. That’s the lowest Composite Rating of any of the stocks to watch mentioned here, reflecting a dismal 2020 when many stores were shut down.
Ulta on Thursday reported fourth-quarter results that topped expectations. Ulta earnings rose 57% while same-store sales jumped 21.4%.
Management, in Ulta’s earnings release, said “we are confident the recovery that began in 2021 will continue, as consumers maintain their self-care routines, become more resilient to Covid surges, and engage in more leisure and social activities.”
But its full-year revenue and same-store sales guidance for the year was a little light. Management cited tough comparisons, higher wages, supply-chain costs and investments in expansion.
Costco stock edged up 0.4% to 527.42 for the week. Shares of the membership warehouse retailer were in a cup base with a 571.59 buy point. The stock is working on a handle that could be finished after Monday. That would offer a lower 545.39 buy point. Investors could already use that level as an early entry.
Costco was also finding support at its 50-day moving average. That line also coincides with its 10-day and 21-day lines.
Costco’s relative strength line is right at highs, reflecting outperformance compared to the S&P 500. The RS line is the blue line in the charts provided.
The stock has a 93 Composite Rating. Its EPS Rating is 90.
The retail chain this month reported fiscal second-quarter results that beat Wall Street estimates. But like the previous two stocks to watch listed here, Costco has struggled to manage costs from the ongoing supply-chain crunch and workers demanding higher pay.
Regeneron stock rose 3.6% to 642.58 last week. On Friday, shares cleared an early entry of 636.46, just above the March 7 peak. REGN stock also moved above another aggressive buy point, 645.10, just above the Feb. 11 high, but pared gains as the market sold off into Friday’s close.
The official buy point is 673.96 from a flat base within a longer consolidation.
REGN stock had a number of tight closes in 2022, until this past week. It has gained momentum off its 50-day line in recent days. Late last month, it also found support at its 200-day line. Regeneron’s relative strength line is at its highest level since late 2020.
The company has recently made big sales gains, helped by its Covid treatment. But earnings are expected to tumble in 2022 as those Covid antiviral sales plunge. Still, Regeneron earnings should be far above pre-2021 levels.
Regeneron has a 94 Composite Rating. Its EPS Rating is 99, the strongest of the stocks to watch mentioned here.
Anthem stock fell 2.4% to 465.26 on Friday. Shares of the health insurer are now below buy points of either 470.12 or 472.11.
Shares broke out on March 4, then pulled back. However, they have found support at their 50-day line. The RS line for ANTM stock has been hitting multiyear highs for weeks. Several other health insurers are acting well.
Anthem said this past week that it plans to change its name to Elevance Health.
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