Dexcom Leads 5 Stocks Near Buy Points
Dexcom (DXCM), Chubb (CB) and EQT (EQT) count among this week’s top five stocks to buy and watch. RBC Bearings (RBC) and Regeneron Pharmaceuticals (REGN) round out the list.
As the stock market rally gains steam, Dexcom is forming a shelf with a 123.46 buy point. CB stock has just topped a handle entry. EQT stock offers an early entry after snapping a downtrend. REGN stock and RBC stock are near early entries while working on traditional buy points.
DXCM and Chubb are on IBD Leaderboard. They combine growth with the defensive edge that has won investor favor in the current volatile, and still uncertain, stock market.
EQT found a spot on the IBD SwingTrader Tuesday as it regained the 50-day moving average. RBC Bearings was Wednesday’s IBD Stock Of The Day.
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Some of this week’s top stocks, like Chubb, have rising relative strength lines near highs. Others, like Regeneron, have RS lines starting to show some lag, which bears watching. A rising RS line means that a stock is outperforming the S&P 500.
Shares of Dexcom fell 1.5% to 112 for the week, but found support at the 21-day exponential moving average. DXCM stock is extended from a 105.43 buy point, after rocketing 28% on earnings Oct. 28 to clear that entry. Shares soared 50% for the whole month of October.
Arguably, shares are forming another shelf pattern. This can also be viewed as a 123.46 handle buy point from a long consolidation going back to the start of 2022. A strong move from the 21-day line could offer an early entry.
This highly rated health care stock previously cleared a bottoming base with a 94.70 buy point. Then on earnings, it gapped above a shelf just above that bottoming base.
Dexcom screens well in terms of key IBD ratings. It earns an IBD Composite Rating of 90, EPS Rating of 90 and RS Rating of 95, all out of a best-possible 99.
The 95 Relative Strength Rating means that DXCM stock has outperformed 94% of all stocks in IBD’s database over the past 12 months.
In the September quarter, Dexcom earnings grew 26% per share as sales rose 18%, FactSet shows. The company returned to earnings growth after several quarters of declines, while beating analyst estimates.
Dexcom makes continuous glucose monitoring systems for patients with diabetes. Its small and discreet wearable technology is ideal for patients on the move. It’s seen as a game changer, doing away with conventional fingersticks.
Shares of Chubb rose 1% to 216.23 on Friday, just clearing a 216.10 buy point. CB stock has rallied for eight straight sessions, but all on lighter volume.
The handle is part of a long consolidation, which began in late March. Shares surged 18% in October on stronger-than-expected earnings.
The provider of insurance and reinsurance products carries an 89 Composite Rating, an 85 EPS Rating and an 88 RS Rating.
In late October, Chubb reported its second straight quarter of accelerating sales growth. It reported premium growth of 15% last quarter and maintained profitability despite losses from Hurricane Ian.
Shares of RBC Bearings dipped 0.1% to 245.82 on Friday. Shares rose 0.8% for the week but backed off Wednesday’s intraday high of 254.08
RBC stock is within 5% of a 256.39 cup-with-handle buy point. Shares already broke above the downward trendline of the handle, which presented an early buying opportunity. Investors could still use that entry, or wait for a move above Wednesday’s high.
Shares are about 2% above the 21-day line and are not yet extended from the 50-day moving average, which is starting to turn up.
RBC stock bears a Comp Rating of 99, EPS Rating of 88 and RS Rating of 93.
The maker of bearings and other parts for aircraft and heavy-duty machines boasts accelerating growth. A big recent merger accounts for a lot of the triple-digit quarterly revenue gains.
Shares of EQT fell 1.2% to 43.03 on Friday, after breaking above the 50-day line Tuesday. The trendline break offers an early entry for aggressive investor. A move above the short-term high of 44.75 may be a better early entry, after shares hit resistance there on Wednesday.
EQT stock remains far below the traditional 52.07 buy point for now.
Oil and gas producer EQT shows a 94 Comp Rating, 80 EPS Rating and 96 RS Rating.
Energy stocks continue to do well and several are near buy points. The Feb. 24 invasion of Ukraine disrupted global oil and gas supplies, further fueling energy prices.
Shares of Regeneron Pharmaceuticals rose 0.2% to 737.11 on Friday, rebounding from the 50-day line to trade just below the 21-day line. The stock dipped 0.1% for the week.
REGN stock has a five-weeks-tight pattern with a 769.53 buy point. A move above Thursday’s high of 751.70 could offer an early entry close to the 21-day and 50-day lines.
Drugmaker Regeneron earns an 87 Composite Rating, a 68 EPS Rating and a 93 RS Rating.
In the latest quarter, sales of Eylea, Regeneron’s eye-disease drug, came in soft. Sales of its Covid antibody treatment tumbled.
While Regeneron earnings and sales have come under pressure after Covid-related revenue has withered, headwinds are seen easing. Analysts polled by FactSet forecast a return to annual revenue growth in 2023.
Strong Eylea sales have excited investors.
For more quality stocks with strong RS lines, check out IBD’s Relative Strength At New High list. Our stock research platform MarketSmith also has a screening tool for stocks with RS lines making new highs.
For other great stock ideas, check out IBD’s proprietary watchlists, like the IBD 50 and the IBD Big Cap 20.
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