Each week we’ll bring you five stocks that are on our radar
In the fast-paced world of investing, staying ahead requires good ideas and timely decisions. This article highlights five stocks worth watching each week for their robust performance, market trends, and growth potential. Discover the stocks that could enhance your portfolio and navigate market fluctuations with confidence.
Last week I profiled Palantir as your “Technology Stock of the Week” based on its position in the AI Services Industry. In addition, Palantir shares have been trading lower, offering an opportunity to buy its dip.
Watch my latest YouTube video for more info on Palantir’s Buy the Dip Strategy
This week’s we’re taking another stock from the group, IBM (IBM).
Like Palantir, IBM has been on a strong bullish run, despite the weakness in other AI stocks like NVIDIA (NVDA), Microsoft (MSFT) and Alphabet (GOOGL).
IBM shares saw a 16% rally carry them higher in January followed by a contraction near its highs in February that resulted in the stock shedding 0.6% for the month.
Shares remain above their key $250 price as analysts are now in the process of eyeing the stock for potential upgrades following the company’s steady growth of revenue and earnings in January.
Slow and steady has been the name of the game for one of the original AI Service companies.
IBM’s share growth has been dwarfed by the likes of NVIDIA and Palantir, though the smooth trading trend, lack of volatility and 2.65% dividend yield have provided strong portfolio gains.
Maintain an eye on the current consolidation above $250 as IBM prepares for the next stage of its bull market rally towards a price target of $300.
Software security stocks are showing relative strength against the Nasdaq 100 and other indexes as investors take a more bullish outlook on the group.
The rationale behind “the trade” is simple, software security will play a more prominent role in the market over the next year than hardware. The outlook also reflects investors’ fear that valuations in the AI hardware industry remain stretched to extremes and need time to cool.
Checkpoint, Cloudflare and other software security companies have remained near the top of their trading ranges as we’ve witnessed a considerable pullback in AI and technology stocks.
Checkpoint posted another solid quarter of earnings results in January with revenue growth of 6.1% and earnings per share that beat Wall Street’s expectations by $0.04.
The company’s management confirmed its prior guidance for revenue and earnings per share for the next quarter and fiscal year 2025.
Technically, CHKP shares are trading in a strong bull market trend with support from its key technical trendlines.
The stock’s current consolidation between $215 and $225 appears to be nothing more than a “healthy break” during a strong trend.
Investors should expect the stock to break above its range during the month of March with a price target of $250.
Investors are looking for the financials to benefit from any relaxing of the regulatory environment – a dangerous thing to wish for in this writer’s opinion – to help get the financial stocks moving higher.
Over the last year, financials have lost their relative strength position in the market, a move that’s usually a sign of pending market weakness.
Despite weakness in the financials, BGC Group has been on a strong bullish trajectory.
BGC Group, Inc. serves as a global brokerage and technology provider, specializing in fixed income, derivatives, equities, commodities, and financial technology solutions. The company offers services like trade execution, clearing, and market data analytics to diverse financial and non-financial institutions, headquartered in New York and listed on NASDAQ.
Simply put, they are a nuts and bolts financial that would benefit from almost any changes to the regulatory environment, just what investors should be looking for.
BGC just released its quarterly earnings results in mid-February.
The company grew revenue by 11% while increasing its earnings per share from $0.04 to $0.05, a 250% increase over the last year.
From a price perspective, BGC shares are preparing for what is likely to be a bullish volatility breakout as the stock approaches the $10 price.
Shares are trading with their 20-, 50- and 200-day moving averages all having shifted into bullish trends. Just a week ago, the stock benefitted from this tri of technical support as the stock found a strong tradable bottom at $9.25.
Now, the stock is trading just pennies below $10, a price that will act as a bullish trigger once crossed above.
From a long-term perspective, BGC shares benefit from a long-term bull market trend. The stock crossed above its 20-month moving average in July 2023 and has remained in a bull market trend since.
Shares of BGC have a short-term target of $12 and a long-term price target of $14.
BUY GOOD DIVIDENDS! That’s the message that I have been delivering to investors for years. The comment is a rebuttal to the thousands of times that someone has suggested a stock that pays an 11% dividend while losing 20% of its value each year.
Here’s a quick hint… Dividend yields are high in those situations because the stock performance stinks. Don’t buy the dividend, but the stock that pays a nice dividend.
That’s the case with AEP.
The utility operator is on track to return to its year-over-year revenue growth of 5% as the company’s operations expand to fit growing demand for energy. AEP is among the companies increasing their output to serve data centers in various parts of the nation.
Investors are flocking to “safe haven” stocks as the market heads into a period of uncertainty. Utility and consumer staples companies have seen increased buying over the last two months as talks of tariffs increase along with geopolitical fears.
Shares of AEP trade with a strong technical foundation.
The stock is trading near all-time highs of $107 with shares holding a strong long-term bull market trend. AEP stock is trading even more strongly from a short-term perspective.
Shares are currently more than 15% higher on a year-to-date basis, reflecting the demand for both income and “safe haven” stocks.
In early February, AEP’s 50-day moving average shifted into a bullish trend. That trend historically forecasts higher prices over the next 4-6 weeks for any stock following the pattern.
With it’s 3.5% dividend yield, strong cash flow and 32% return over the last 12 months, AEP shares round out to a nice dividend stock of the week.
Best Buy will be taking heat from both sides as we enter the month of March.
From a seasonal perspective, March is a neutral month for Best Buy stock, but the company is facing different pressures this month, namely tariffs.
Best Buy is one of the companies that has landed itself on a danger list as 97-98% of the company’s products are imported from China and Mexico. With tariffs going into effect this week, the company is likely to start making moves to brace investors for their margins to become more pressured.
Conveniently, Best Buy will release its quarterly earnings results on Tuesday, March 4 as the company is part of the parade of retail earnings that starts this week to close out the earnings season.
Best Buy has not seen a positive quarter of revenue growth since November 2021 and earnings per share have been cut by as much as 50% in some quarters.
The company’s plan for dealing with tariffs will likely include lowering investors’ expectations for the next few quarters performance, a move that the stock won’t handle well.
Shares of Best Buy have seen an impressive recovery since January as the stock has rallied from $82.50 to their current $90.
The stock’s key trendlines are in slightly bullish patterns just below its current price, making the short-term outlook tepid at best.
Any disappointment from the company’s earnings or outlook will target an immediate move to $80. From there, the stock risks dropping into a long-term bear market trend that would target further declines to $60.
