Microsoft (MSFT), Novo Nordisk (NVO) and Intuitive surgery (ISRG) are among this week’s top stocks to watch as they settled into the basics after recovering from key levels. Apollo global management (APO) and Bookings of holding companies (BKNG) also made the cut.
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Microsoft stock can be found on the IBD Long Term Leaders list. Novo Nordisk is on the IBD Leaderboard and on the IBD 50 list of top growth stocks. Intuitive Surgical gained a spot on IBD SwingTrader on May 15 as its shares soared.
The relative strength lines of all five top stocks to buy and watch have flattened somewhat after the rallies, but remain not far from their highs. A rising RS line, the blue line in the charts shown, means a stock is outperforming the S&P 500 index.
The stock market gave a green signal to investors on Thursday, with major indices hitting record highs.
Microsoft stock
Shares of the tech giant rose for a fourth straight week, recovering from the 10-week moving average. Microsoft stock shows a 430.82 buy point on a flat eight-week base, still 2% below entry. Investors could use a move back above Thursday’s high at 425.42 as an early trendline entry.
Keep in mind that: Nvidia (NVDA) will announce earnings after closing on Wednesday, May 22. That report could have a material impact on Microsoft stock. Both Nvidia and Microsoft are considered leaders in artificial intelligence. Both are also among the Magnificent Seven stocks that drove the market rally over the past year.
Microsoft itself reported its fiscal third quarter results on April 25. On a year-over-year basis, Microsoft’s revenue rose 20%, while sales rose 17%. Strength in the cloud computing sector drove the solid gains.
Analysts now expect 20% earnings growth for the full year and a further 13% gain next year. Turnover increased by 15% and 14% in the same periods.
Microsoft earns an IBD Composite Rating of 84 and an EPS Rating of 96, both out of a best possible score of 99. A 78 RS Rating means it has outperformed 78% of all stocks in the IBD database over the past year.
Dow Jones closes above 40,000; All eyes on Nvidia revenue
Novo Nordisk shares
Shares of the Wegovy maker rose for the second week in a row, hitting the 10-week mark. Novo Nordisk stock is trading at a buy point of 138.28 from a shallow cup base, still 5% below entry. It is up 24% from a previous breakout with a flat base in January, MarketSurge’s pattern recognition shows.
Shares retreated late last week. It’s possible that Novo will start working on a handle, which would provide a lower buy point.
Novo Nordisk stock has an IBD Composite Rating of 96, an EPS Rating of 97 and an RS Rating of 89.
On May 2, the company posted a 25% increase in earnings per share and a 19% increase in revenue for the first quarter. Denmark-based Novo Nordisk has long been known for its diabetes treatments and has continued to innovate. The Ozempic and Wegovy treatments for diabetes and weight loss have stimulated growth.
Analysts expect earnings growth of 23% in 2024 and an increase of 23% in 2025.
Intuitive surgical supply
Shares of the maker of robotic surgery systems are up for a fourth week in a row, reclaiming the 10-week mark. Intuitive Surgical Stock is trading at a buy point of 403.76, still 2% below its entry price. Investors could still use Wednesday’s move above the 50-day line as an early entry.
Intuitive Stocks have an IBD Composite Rating of 90, an EPS Rating of 92, and an RS Rating of 83.
On April 19, the company announced that first-quarter profits rose 22%, while revenue increased 11.5%.
Analysts predict 10% earnings growth in 2024 and 17% earnings in 2025.
Apollo Global Management shares
Shares of the investment firm rose for the second week in a row, above the 10-week mark. The MarketSurge shows shares of Apollo Global Management on a flat six-week basis with a buy point of 117.15.
Investors could use Wednesday’s high of 115.48 as an early entry.
Apollo Global stock has an IBD Composite Rating of 93, EPS Rating of 95 and RS Rating of 88.
As of May 2, the company posted a 21% increase in earnings per share for the first quarter, while revenue grew 13%. That report came days after Apollo announced it would make the acquisition US silica companies (SLCA) in a $1.85 billion deal that will take private the supplier of commercial silica used in the oil and gas industry.
Analysts predict earnings growth of 12% in 2024 and an increase of 20% in 2025.
Booking of stock stock
The travel company’s shares fell after a three-day winning streak and still remained above the 10-week mark. Booking Holdings shares have formed a double bottom and forged a handle as of Friday. That gives Booking a buy point of 3,811.57.
The handle emerged after several days of winning after winning.
Booking stocks have an IBD Composite Rating of 94, EPS Rating of 98 and RS Rating of 75.
On May 2, the parent company behind Booking.com, Priceline and Kayak posted a 76% increase in earnings per share for the first quarter, on a 17% revenue gain. Booking takes market share from competitor Expedia.com (EXPE), analysts said after the report. The company says global leisure travel remains resilient ahead of the key summer season.
Analysts expect earnings growth of 16% in 2024 and an increase of 17% in 2025.
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