Costco stock is approaching a new buy point, while several other top stocks are making new entries into the stock market today. That is a positive development for the current market prospects.
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Today’s stocks to watch include: Costco Wholesale (COST), Sterling infrastructure (STRL), Dycom (DY), Fidelity National Information Services (FIS), Cintas (CTAS) and Bandwidth (BAND). All six stocks appeared in the RS Line Blue Dot list, an IBD MarketSurge-exclusive stock screen.
Heavy construction company Sterling Infrastructure rose nearly 16% on Tuesday afternoon after reporting the company’s better-than-expected first-quarter results. Shares jumped past a 116.36 buy point during a consolidation. The 5% buy range comes in at 122.18, so the stock is slightly outside the buy zone.
Telecommunications contractor Dycom climbed 1.4% in afternoon trading on Tuesday, surpassing a 146.32 flat-base quote. Volume remained below average, a sign of sluggish institutional demand in this key chart area. Ideally, volume should rise at least 40% above average, indicating overwhelming demand.
Fidelity National briefly topped a 74.75 flat-base entry in early trading before sliding under that buying trigger during afternoon action. Late Monday, the company reported strong first-quarter results.
Cintas will extend its win streak to three sessions on Tuesday, with an afternoon climb of 1.3%. Shares are recovering from their 50-day line and approaching a 704.84 buy point on a flat base. The stock has risen above a trendline around 671.
Bandwidth stocks, meanwhile, rose more than 14% in afternoon trading to hit a new 52-week high. The stock showed a bullish breakout gap past a cup base of 21.68 after Q1 results.
Costco Stock Eyes Buy Point
Costco shares rose more than 1% Tuesday afternoon, continuing higher on the right side of the cup base. The official buy point is 787.08, but watch for a possible handle to offer a lower entry.
On March 8, Costco missed sales expectations for the holiday quarter, offsetting higher e-commerce sales. Comparable turnover grew by almost 6% compared to a year earlier. Online sales grew by 18% compared to a year ago.
Costco said it earned $3.92 per share, up nearly 19% from the year-ago period and ahead of estimates. Revenue rose nearly 6% to $58.44 billion, with views lost.
The stock’s relative strength line is hitting new highs. That is a positive sign in the run-up to a possible breakthrough.
Make sure you follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen to learn more about growth stocks, the Dow Jones Industrial Average, and the current stock market.
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