Dell stock is among the top companies currently on today's IBD Screen Of The Day, which features stocks with relative strength lines hitting new highs. Goodyear Tire and Tenet Healthcare also made the list and are nearing new buy points.
Dell Stock Trades In Buy Range
Dell is currently trading inside a key buy zone after breaking out in early December. Since the breakout, Dell stock has triggered the 7% to 8% sell rule. But in early January, shares recovered and reclaimed the buy zone once again.
Dell stock is one of the few technology companies showing strength as it trades above its 21-day exponential moving average and 50-day moving average.
Shares fell roughly 0.6% in today's market but appear to be gaining support at the 21-day line.
According to MarketSmith analysis, the official buy point is 58.53 and is part of a flat base. Shares remain inside the buy area which tops out at 61.45.
The relative strength line in Dell stock has been moving sideways since late September. But in recent weeks, the RS line gained serious momentum, which is a bullish indicator. The line compares a stock's performance with that of the S&P 500.
The Texas-based company maintains a solid IBD Composite Rating of 91. The company's year-over-year EPS growth has averaged 31% in the three most recent quarters. This exceeds IBD's CAN SLIM requirements for top growth stocks.
Two Growth Stocks Nearing Buy Zones
Goodyear Tire & Rubber is also among stocks with RS lines hitting new highs. Shares are currently trading just 3% below a 23.64 buy point of a double-bottom base. The stock initially broke out on Jan. 13, but shares faded from the buy point amid this week's market declines. Goodyear is still holding strongly above its 21-day and 50-day lines.
The stock's 97 RS Rating is one of its strongest features. Goodyear's 85 Composite Rating, while still strong, has been hindered by its lower-than-ideal 68 EPS Rating.
Goodyear Tire reported an annual earnings loss in 2020 of $1.91 a share. The company was largely impacted by the pandemic. However, Goodyear has recovered in strong fashion and has reported multiple quarters of positive earnings. In the most recent quarter, earnings grew 620% year over year to 72 cents a share, while sales rose 42%, according to IBD data.
Goodyear announced in late December that it has officially entered the arena for manufacturing electric-vehicle replacement tires and launched its new ElectricDrive GT, in a recent statement.
With its 122-year history, Goodyear Tire & Rubber is easily one of the most recognizable tire manufacturers in its field. The firm currently has 46 manufacturing facilities in 21 countries including the U.S.
THC Stock Analysis
Tenet Healthcare also traded near a buy point on Wednesday. The stock tested support at its conjoined 21-day and 50-day lines as shares moved closer to an 83.79 entry. Shares remain roughly 7% away from the buy point.
Not unlike Dell stock, Tenet's RS line has been moving sideways in recent months but improved the past couple of days and hit a new high this week. Tenet Healthcare has a decent Composite Rating of 83. Most impressively, the company saw the bottom line rise 26% and 211% in the past two respective quarters. This shows powerful earnings growth acceleration and is a bullish sign.
Tenet Healthcare, headquartered in Dallas, operates 60 hospitals and has an ownership interest in approximately 550 other health care facilities, including surgical hospitals, ambulatory surgery centers, imaging centers and other care sites and clinics.
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