Network Arista (NET), a name that consistently appears on analysts’ lists of top AI stocks, and cruise line’s RCL stock tops the watchlist of five stocks near the buy point this weekend, with all All of them were available for purchase. chip manufacturer Monolithic electrical system (MPWR), which is receiving a boost from AI-related demand, is also in focus. A pharmaceutical giant for weight loss and diabetes Novo Nordisk (NVO) and senior credit card leader Aexpress americans (AXP) rounds the list.
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ANET, MPWR and RCL stocks are part of the top 50 . IBD list of leading stocks. Royal Caribbean (RCL) is also introduced as a IBD shares of the day in this week.
With the Federal Reserve and the European Central Bank raising interest rates to combat persistently high inflation, creating a challenging economic environment in the second half of 2023, the combination of anti-recession demand Recession and new growth paths of NVO stock are very attractive. Travel demand continues to grow again, with China reopening providing more fuel, which should help RCL stock weather the economic uncertainty. Meanwhile, American Express should avoid the worst of any increase in credit card losses given their focus on premium customers.
The market rally showed renewed strength last week, sending more quality stocks into buy or prepare to buy range.
AI stock price increase
The two tech stocks on the list have led the way even as the tech industry’s outperformance at the start of the year has faded over the past month. Interest in AI stocks increased the following Friday C3.ai (artificial intelligence) reported better-than-expected results, and CEO Thomas Siebel noted a “significant change” in business sentiment compared to mid-2022. C3.ai shares jumped nearly 34% on Friday. . ANET stock rose 3%, Nvidia (NVDA) 2.5% and GitLabs (GTLB) 4.6%.
Meanwhile, two of the biggest AI stocks, Meta . Platform (META) And Microsoft (MSFT), increased by 6.1% and 1.7% respectively. Facebook parent company Meta and Microsoft together account for more than 41% of revenue for Arista Networks in 2022.
ANET stock
Arista Networks reported a fifth straight quarter of accelerated earnings growth on February 14, posting 72% EPS growth. Needham analyst Alex Henderson, who raised his price target to 165 from 155 with a buy rating, says that Arista is delivering that AI is a “major use case that requires massive investment.” Increasing market share serving the corporate market – corporate networks, government agencies and educational institutions – is another key growth driver, he writes.
ANET stock has gained 3.8% over the past week to 140.68, finding support at the 21-day moving average. ANET stock has 140.91 buy points from the base of the cup, 10 cents above the Dec. 1 high. That buy point is still valid even though the mid-February breakout attempt has stalled.
Arista Networks has climbed above a short-term downtrend, offering an early entry just below the official buy point.
MPWR . stock
Monolithic Power chips provide power solutions for industrial applications, telecommunications infrastructure, cloud computing, automotive and consumer applications. KeyBanc analyst John Vinh wrote in a note on February 9, praising MPWR’s resilience after Q4 earnings.
Needham analyst Quinn Bolton, who raised his price target to 525 from 460, underscored Monolithic’s strong appeal when it comes to providing graphics processing units for AI use cases, noting that Next-gen GPUs will ramp up in the first half of 2023.
MPWR shares rose 2.5% to 506.03 on Friday. MPWR has an official buy point of 530.75 from one cup with handle base. However, Friday’s move broke the downtrend from the top of the handle, providing an early entry point.
Shares of RCL
After carrying water — and a lot of debt — at the beginning of the pandemic, RCL is now running high again. With three new ships to be delivered this year, capacity will reach 14% of pre-Covid levels. Load factor recovered to 95% in Q4 from less than 60% a year earlier, with 100% meaning two passengers per cabin.
CEO Jason Liberty said the early booking period, known as the wave season, for 2023 “has exceeded all expectations, even considering our capacity growth”. He noted that the seven biggest booking weeks in the company’s history have all occurred since reporting third-quarter earnings in early November.
China’s ban on yacht engineering will end in the first half of this year, as will Japan’s potential testing and quarantine for Chinese tourists.
RCL shares rose 2.9% to 74.02 on Friday. This move this past week broke the downtrend that followed the rally following the earnings report in RCL stock, providing an early entry point.
The official entry point is 76.40, 10 cents above the February 9 high, which was the top of the handle at the end of a consolidation that began last April.
Royal Caribbean Stock relative strength lineThe blue line in the IBD chart tracks its progress against the S&P 500, which is just around the corner from its highest point since last April.
RCL stock is one of many travel-related names showing strength in 2023.
NVO Stock
On Thursday, Morgan Stanley analyst Mark Purcell called Novo Nordisk a “catalyst driving idea” ahead of Phase 3 data for Wegovy to treat obesity. His base case has both Novo and Eli Lilly (LLY) for a 5% to 10% increase in trading as Wegovy demonstrates a 12% to 17% benefit on cardiovascular events.
NVO shares also rose on the approval of the oral drug Rybelsus for type 2 diabetes, the first such oral drug. Earlier this year, the FDA said patients can now take Rybelsus without trying a previous treatment for type 2 diabetes.
NVO stock rose 0.9% to 144.90 on Friday, breaking a 144.88 buy point from one flat sole.
AXP shares
AXP shares rose 2.1% to 179.09 on Friday. The official buy point is 182.25 from the long cup base with handle. However, Friday’s move also suggests an early entry with a handlebar trendline break.
On February 8, Morgan Stanley analyst Betsy Graseck upgraded AXP stock to outperform with a price target of 186, while demoting other names. She considers AXP to be her first choice in the consumer finance sector because of its higher credit quality and sustainable revenue growth. While AXP could see credit losses rebound to pre-Covid levels by 2024, other credit card players will see credit scores even worse.
AXP raised its dividend 15% to 60 cents per share at the end of January.
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