Costco stock is approaching a new buy point while a number of other top stocks are hitting new entries on the stock market today. That's a positive development for the current market outlook.
Today's stocks to watch include Costco Wholesale, Sterling Infrastructure, Dycom, Fidelity National Information Services, Cintas and Bandwidth. All six stocks appeared in the RS Line Blue Dot list, an IBD MarketSurge-exclusive stock screen.
Heavy construction company Sterling Infrastructure surged nearly 16% Tuesday after the company's better-than-expected first-quarter results were announced. Shares leapt past a 116.36 buy point in a consolidation. The 5% buy range tops out at 122.18, so the stock is slightly out of the buy zone.
Telecom contractor Dycom climbed 1.3% Tuesday, topping a 146.32 flat-base entry. Volume ended below average, a sign of sluggish institutional demand at this key chart area. Ideally, volume should increase at least 40% above average to indicate overwhelming demand.
Fidelity National briefly topped a 74.75 flat-base entry in early trade before slipping below that buy trigger in midday action. Shares closed up 5.5%. Late Monday, the company reported strong Q1 results.
Cintas extended a win streak to three session Tuesday, with a 1% climb. Shares are rebounding from their 50-day line and approaching a 704.84 buy point in a flat base. The stock has moved above a trendline entry around 671.
Bandwidth shares, meanwhile, soared nearly 10% to hit a fresh 52-week high. The stock staged a bullish breakaway gap past a 21.68 cup-base entry following Q1 results.
Costco Stock Eyes Buy Point
Costco stock rallied 2% Tuesday, moving further up the right side of a cup base. The official buy point is 787.08, but keep an eye out for a potential handle to offer a lower entry.
On March 8, Costco missed holiday-quarter revenue expectations, offsetting higher e-commerce sales. Comparable sales grew almost 6% vs. a year earlier. Online sales grew 18% vs. a year ago.
Costco said it earned $3.92 a share, up nearly 19% vs. the year-ago period and ahead of estimates. Revenue rose nearly 6% to $58.44 billion, missing views.
The stock's relative strength line is hitting new highs. That's a positive sign ahead of a potential breakout move.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
