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 rallied to just below a 216.10 handle entry. EQT stock offers an early entry after snapping a downtrend. REGN stock and RBC stock also provide trendline entries while working on traditional buy points.
DXCM and other health stocks are winning a place on the 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 found support at the 21-day exponential moving average Wednesday, rallying 1.7% to 112.92. 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.
Leaderboard chart analysis finds that DXCM stock is holding firm above the buy zone, which goes to 110.70. Arguably, shares are forming another shelf pattern. This can also be viewed as a 123.46 handle entry from a long consolidation going back to the start of 2022.
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 edged up 0.5% to 214.15 Wednesday, adding to a six-session win streak on lighter volume.
CB stock is just below a 216.10 handle buy point, after finding support at the 21-day line. 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 88 Composite Rating, an 85 EPS Rating and an 87 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 eased 1.7% to 245.96 Wednesday but recently found support at the 21-day line.
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 presents an early buying opportunity.
While shares are 2% above the 21-day line, they 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 94.
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 dipped 0.5% to 43.56 Wednesday, 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 could be another early entry.
EQT stock remains far below the traditional 52.07 buy point for now.
Oil and gas producer EQT shows a 96 Comp Rating, 80 EPS Rating and 97 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 eased 1.85% to 735.36 Wednesday. But they are trading tightly near highs, finding support at the 21-day/10-week lines.
REGN stock shows a four-weeks-tight pattern with a 769.53 entry. A 21-day/10-week rebound could serve as an early entry.
Drugmaker Regeneron earns an 88 Composite Rating, a 68 EPS Rating and a 92 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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