Wednesday's IBD 50 Stocks To Watch pick, airline leader Ryanair, is one of the best stocks to watch right now. Ryanair stock is finding support at a key chart level, placing it in a new buy area Wednesday.
Ryanair specializes in low-cost air travel and is based out of Dublin, Ireland. With flights to several destinations in Netherlands, Switzerland, Italy, the U.K. and France, the company's operations are entirely within Europe and the Mediterranean countries.
On Nov. 6, Ryanair said earnings jumped 51% to $7 per share vs. the year-ago period. Revenue jumped 32% to $5.2 billion.
The company's December-quarter results are due Jan. 29, so there's not a whole lot of time to build up a profit cushion. That increases the risk of buying the stock right now.
Ryanair stock boasts a strong 96 out of 99 IBD Composite Rating, according to IBD Stock Checkup, due to strong current fundamentals, along with huge stock price gains since October 2022.
Ryanair Stock Rebounds From Key Level
RYAAY stock climbed about 20% from a breakout at 112.75 in mid-November. This month, it pulled back to its 10-week moving average, where it is finding support. The decisive rebound from the 10-week line places the travel stock in a buy zone from 125.15 to 137.66.
Shares reversed from early gains to fall 0.1% Wednesday morning.
Meanwhile, the top-ranked stock is close to completing a flat base, which would offer a conventional entry at 136.14.
The relative strength line hit a new high in late December, confirming Ryanair stock as stock market leader, the IBD MarketSmith chart shows. 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, along with Ryanair stock.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Royal Caribbean | 112.95 | Cup base | |
| Snowflake | 202.83 | Flat base | |
| Microsoft | 384.30 | Flat base |
Source: IBD Data As Of Jan. 24, 2024
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
