Wednesday's IBD 50 Stocks To Watch pick, bio stock leader Procept BioRobotics, is approaching a rare buy point on the stock market today. That makes Procept stock one of the best stocks to watch right now. But investors should be aware that shares dived more than 9% early Wednesday before cutting losses in morning trading.
Procept BioRobotics is a surgical robotics company focused on advancing patient care by developing transformative solutions in urology.
The company develops, manufactures and sells the AquaBeam Robotic System, an advanced, image-guided, surgical robotic system for use in minimally invasive urologic surgery with an initial focus on treating benign prostatic hyperplasia, or BPH.
Late Tuesday, the company said its per-share loss narrowed to 54 cents on revenue of $43.6 million. Sales grew 83% vs. the year-ago period.
Fourth-quarter results were in line with preliminary results announced in January, which were about 6% ahead of the Street when announced, according to William Blair analyst Brandon Vazquez. The research firm maintained an outperform rating on the bio stock.
"As we enter 2024, we believe there are several positive factors that will enable us to continue to pursue our long-term growth strategy while also demonstrating a disciplined approach on our path to profitability," Chief Executive Reza Zadno said in the news release.
Zadno continued, "We believe these underlying fundamentals reflect a technology that is establishing the foundation to become the BPH surgical standard of care and a business poised to be a leading urology company globally."
Bio Stock Eyes Buy Trigger
Following big gains since late October, Procept stock is approaching a 51.90 buy point in a rare ascending base on its weekly chart, according to IBD MarketSmith chart analysis. Clearing that buy point in heavy volume can offer investors a chance to pick up shares.
If identified properly, the ascending base can lead to big gains. While the definition of an ascending base sounds relatively straightforward — three pullbacks amid a series of higher price highs and higher price lows — context matters a great deal.
Leading stocks create ascending bases during periods of market weakness. The stock continually hits a new high, but is dragged down by the general market.
Despite recent price gains, the bio stock shows a middling 74 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup.
On a bullish note, though, the stock's relative strength line is nearing a new high. That's a sign of strong stock market outperformance. Look for the RS line to hit a new high on the breakout day or shortly thereafter to confirm that the bio stock is a stock market leader.
Remember, the RS line measures a stock's price performance vs. the S&P 500 and is the blue line plotted on IBD Charts.
Best Stocks To Buy And Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Celsius | 68.94 | Consolidation | |
| Netflix | 579.64 | Tight area | |
| Intra-Cellular Therapies | 74.17 | Cup base |
Source: IBD Data As Of Feb. 28, 2024
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
