BREAKING: Dow Futures Rise Slightly After Stocks Fall In Whipsaw Session
Your stocks to watch for the week ahead include five names that are breaking out or offering early entries, at least intraday on Friday. They include housing-related Floor & Decor (FND) and TopBuild (BLD), as well as Entegris (ENTG), SQM (SQM) and Steel Dynamics (STLD).
Floor & Decor stock popped 2.6% to 127.80 on Friday. Intraday, shares hit 131.70, breaking of a flat base on a weekly MarketSmith chart. The buy point on that base, part of a base-on-base formation, is 128.60.
However, investors could have bought FND stock as it cleared short-term resistance, around 126.78.
As with most of the other stocks to watch here, shares of the flooring retailer have strong ratings. FND stock has best-possible Composite and EPS ratings of 99.
The relative strength line for FND stock hit a record high on Friday. The RS line, the blue line in the charts provided, tracks a stock’s performance vs. the S&P 500 index.
Floor & Decor has been opening more stores, after the coronavirus pandemic last year prompted retail-industry restrictions. The tight housing market brought on by the pandemic has also benefited the company.
“The secular demand for homes continues to exceed available supply which we believe will continue to lead to growth in the home price appreciation and support home reinvestment projects,” CFO Trevor Lang said on the company’s earnings conference call in August.
Entegris stock faded to rise just 0.8% at 120.64 on Friday, working on a flat base with a 126.51 buy point.
Shares rose as high as 123.38, briefly clearing short-term resistance and a 122.41 early entry. ENTG stock is also a Long-Term Leader and was Friday’s Stock of the Day.
The company, which produces materials used to design microchips, has a Composite Rating of 96. Its EPS Rating is 92.
Entegris in July reported second-quarter results that beat expectations. The company also forecast third-quarter results that were above expectations.
Those results arrived amid an ongoing chip shortage, after the pandemic shut down facilities that serve the chipmaking industry but demand endured.
“The semi market looks increasingly strong across the logic, memory and mainstream segments, driven by improving demand trends in areas like mobile phones, high-performance computing, IoT and auto,” CEO Bertrand Loy said on the company’s earnings conference call.
However, Loy noted that the industry was “constrained,” adding that “every day is a battle and likely will be for a while.”
Sociedad Quicmica y Minera de Chile, or SQM, broke out past a 55.40 handle buy point in a long consolidation. Shares were up 3.2% to 55.78 on Friday.
Unlike other stocks to watch here, IBD’s ratings of the Chilean miner, one of the world’s largest lithium producers, aren’t in the 90s. The stocks has a Composite Rating of 78. Its EPS Rating is 61.
But earnings are rebounding, with analysts expecting 116% EPS growth in 2021 and 43% in 2022.
The company, when it reported earnings in August, said the lithium market’s fundamentals were “stronger than ever.” Electric vehicles have helped drive demand for the substance.
Fellow lithium-related plays Albemarle (ALB) and Livent (LTHM) are trading at highs.
Steel Dynamics stock hit 68.18 intraday, but reversed to close down 0.2% at 65.88. Shares of the steelmaker are trying to rebound off their 50-day line and reversing a downtrend that began last month. Those are both early buy signals. Investors may want to wait for STLD stock to show strength, moving above Friday’s intraday high, before taking a position.
Similar to other stocks to watch here, STLD stock has a 99 Composite Rating. Its EPS Rating is 95.
Steel Dynamics stock got a lift last month as President Biden’s massive infrastructure deal cleared the Senate. Shares later gave up some of those gains.
U.S. Steel (X) and Nucor (NUE) are among other steelmakers rebounding Friday.
TopBuild stock, up 0.7% to 225.29 on Friday, briefly topping a 299.99 buy point from a cup-with-handle base for a second straight session, but failing to close above it. The stock offered an early entry on Thursday, still actionable from that.
As with most of the other stocks to watch here, it has Composite and EPS ratings in the 90s. Both stand at 98.
The company, which installs and distributes insulation materials for the construction industry, was the Stock of the Day on Thursday. Like Floor & Decor, management has expressed optimism about the housing market.
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