Monday's IBD 50 Stocks To Watch pick is Exelixis, which is just below a recent buy point in Monday's stock market rally. That makes Exelixis stock one of the best names to buy and watch right now.
Exelixis has made a name for itself as a cancer treatment specialist. It sells Cabometyx, a treatment for several forms of kidney, liver and thyroid cancer. The company's Cometriq treats thyroid cancer.
Over the last eight quarters, Exelixis revenue growth has ranged from 4% to 36%. The company posted $566.8 million in sales in the fourth quarter, marking an 18% year-over-year gain.
Bottom-line growth has been strong in recent quarters. Over the last three quarters, Exelixis generated average earnings growth of 202%. In the fourth quarter, Exelixis showed 67% growth over the prior-year quarter, to 55 cents per share.
Analysts expect an earnings gain of 206% in the first quarter, with a 2% rise in earnings for the full year. For full year 2026, Wall Street sees a 16% rise in earnings to $2.36 a share, per IBD MarketSurge.
Here's How To Analyze Stocks Like Nvidia In Good Times And Bad
Exelixis Stock Eyes Buy Point
Exelixis stock ended a two-day rally Friday, falling 0.6%. Shares are just below a 37.59 buy point in a flat base following a late February breakout move. The stock added nearly 1% Monday morning.
The relative strength line hit a new high in early March, per IBD MarketSurge chart analysis. That's a clear sign of strength in a weak stock market environment.
Remember, the RS line measures a stock's price performance vs. the S&P 500 and is the blue line on every IBD chart. If the market is trending down, good stocks will outperform just by treading water. When the market rebounds, the stocks with best relative strength should bounce back even stronger than the market.
Another positive signal is that the current base formation is an early first-stage base. In late January, the stock undercut the lows of its previous flat base, resetting the base count back to one. Early-stage bases are more likely to net bigger gains than later-stage formations.
The IBD Stock Checkup shows that Exelixis stock boasts a strong 97 out of a best-possible 99 IBD Composite Rating, another bullish attribute. That strong Composite Rating places the name among the best stocks to buy and watch in Monday's market.
Tesla Tanks, Nvidia Slides — What's An Investor To Do? Start Here
Other Stocks To Keep An Eye On
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 |
|---|---|---|---|
| W.R. Berkley | 63.98 | Cup with handle | |
| ADMA Biologics | 23.64 | Cup base | |
| Travelers | 263.08 | Handle entry |
Source: IBD Data as of March 24
Follow Scott Lehtonen on X at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
