The S&P 500 has fallen over the past two weeks, but there are plenty of stocks showing strength. oil services giant slb (slb) in the buy area. Master Card Credit Card (Master’s) is also in buy territory, and is close to other entries. carnival (CCL) tests support within a new rule. Arista Networks (Anita) is not far from a buy point after the profit gap increases. while, KB major (KBHCreated a rare trading pattern.
The market rally is under severe pressure, with the Nasdaq falling below the 50-day moving average. The S&P 500 has held this level, and many non-tech sectors are holding up. But investors should be careful.
SLB, formerly known as Schlumberger, rose above a buy point last week as oil prices rose for the seventh consecutive week, to their highest levels since last August. The oil services giant ranks second in the oil and gas field services group, led by Tide water (TdP), according to the IBD stock check.
The SLB was the stock of the day from IBD on August 9 and was added to the SwingTrader.
Shares broke out on August 9 and are trading in buy territory, just above 58.70 buy points for the base of a cup with handle.
SLB stock has a composite rating of a near perfect 98 out of the 99 best possible. The composite rating combines various technical indicators into one easy-to-read score. The stock has an 89 EPS rating. The stock’s line of relative strength is down from its January highs and has a rating of 92 RS.
Cloud networking giant Arista Networks beat its forecast for second-quarter results on July 31. Arista’s dividend increased 46% to $1.58 per share, compared to estimates of $1.44. Revenue jumped 39% to $1.46 billion, versus expectations of $1.38 billion. Analysts expect Arista’s AI network offerings to start driving growth around 2025.
ANET stock is a member of the IBD 50 list and ranks second in the computer networking group, according to an examination of IBD stocks.
Shares exceeded 178.36 buy points on Aug. 1 after earnings. ANET stock has since fallen in volume, closing Friday at 174.94. The moving averages are starting to catch up.
Tightening action is constructive after wild measure in recent months, showing resilience amid a technology-led downturn.
Arista has a 98 composite rating and a 98 EPS rating. ANET stock has a rating of 93 RS.
KB Home was IBD Thursday’s stock. Homebuilders have rallied strongly this year as rising interest rates have slowed existing home sales, driving new home demand and pricing. The residential/industrial/commercial group is up approximately 38% year-to-date in 2023.
KBH stock is on a bullish base that started in mid-May. Bullish bases are uncommon and generally form in stocks eager to move higher.
The base has 55.37 buy points and has held support at the 21-day exponential moving average of KBH stock. The stock broke below the 21-day line on Thursday, extending losses on Friday, as rising Treasury yields signaled higher mortgage rates.
KBH stock is hovering above the 50-day moving average.
Year-to-date, shares are up nearly 65% and are trading near their highest levels since 2007.
KBH stock has a 94 Composite rating and an 83 EPS rating. Its relative strength line is just shy of its recent August highs and has a rating of 95 RS.
Carnival is up nearly 108% this year as cruise lines see a huge wave of bookings while the travel industry rebounds. The 50th member of IBD reported total customer deposits of $7.2 billion in second-quarter profit compared to late June and expects to return to profitability in the second half of 2023.
CCL stock rose nearly 34% following its results for the second quarter on June 26. Shares have since retreated from their highs of July 5 and are trading below 19.55 buy points for a firm base.
CCL stock fell 3.3% on Friday to its 50-day moving average and just below its 10-week line. Strong rebound could provide early entry, as last week’s high of 18.13 offers potential early entry.
Carnival received a rating of 88 composites. The shares earned a 63 EPS rating as losses improved in the past nine quarters. CCL stock’s RSI is off its early July highs and it has a rating of 97 RS.
Master Card Credit Card
Payments giants visa (Fifth) and Mastercard are off to a strong start to the year as consumer spending has proven more resilient than some economists expected. The rises in cross-border transaction and payments volumes have fueled both companies’ profits in the past four quarters.
The MA stock is trading in a flat base buy range with 392.20 buy points. Mastercard also has a narrowing five-week pattern inside the buy zone, providing an alternative entry at 405.19. Investors can use Thursday’s high of 400.63 as a previous entry.
MA stock has a composite rating of 87 and an EPS rating of 86. Mastercard’s RSI has fallen from its January highs and is currently rated at 75 RS.
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