S&P 500 software giant ServiceNow, Samara, Toll Brothers, Eagle Materials and Jabil are all part of an elite club. All five boasted a "blue dot" at the end of their relative strength lines in MarketSmith charts at Friday's close.
Why does that matter? The relative strength line tracks a stock's performance vs. the S&P 500 index. It's an easy way to see if a stock is a true leader in good markets or bad. But stocks with strong RS lines often are extended.
The RS line blue dot, on either a daily or weekly chart, marks stocks that are still in bases, or just breaking out, but with the RS line at 52-week highs. So it's an excellent way to find leading stocks that are actionable or setting up.
In this case, Samsara, NOW stock, Toll Brothers, Eagle Materials and Jabil are all actionable. The charts below include the blue RS line, but do not have the MarketSmith blue dots.
IOT stock and ServiceNow are part of the IBD 50 list.
IOT Stock
IOT stock skyrocketed over 22% for the week to 30.93. That included a 13% spike on Friday, blasting above a double-bottom base with a 29.79 buy point. It also cleared a trendline entry near 28 earlier in the day. Samara beat earnings views Thursday night and guided higher.
Samsara was Friday's IBD Stock Of The Day.
NOW Stock
NOW stock rose 4.8% to 590.88 last week, rebounding from its 50-day and 10-week lines. The S&P 500 leader still actionable from those levels. ServiceNow stock also is closing in on a 614.36 buy point from a shallow cup base.
TOL Stock
TOL stock jumped 8.3% to 83.83, rebounding back above the 50-day line and then just topping an 83.72 buy point. That's from a flat base.
TOL stock is on SwingTrader.
EXP Stock
EXP stock leapt 8.45% to 194.78 last week, also racing above the 50-day and eking past a traditional buy point. That entry is 194.05 from a flat-base buy point.
JBL Stock
JBL stock surged 11.8% to 115.42 for the week. That's just above a 115.25 buy point from a flat base. The weekly volume was the highest since late 2019, and the dollar volume was far higher than that.
On Monday, Jabil popped 8.9%, rebounding above the 50-day line, on news that it's selling its mobility unit to BYD Electronic, a unit of China EV and battery giant BYD. That will reduce Jabil's exposure to China and Apple.
Investors can find the RS Line Blue Dot stocks via the "Open Stock Ideas" button on the top of MarketSmith charts.
Please follow Ed Carson on X/Twitter at @IBD_ECarson for stock market updates and more.
