Tuesday's IBD 50 Stocks To Watch pick, banking giant Deutsche Bank, is approaching a new buy point as it looks for support at an important level. That makes Deutsche Bank stock one of the best to watch right now.
German banks continue to recover from the liquidity crisis that hit the banking sector in March 2023. The sudden collapse of Silicon Valley Bank, a subsidiary of SVB Financial, triggered a banking crisis that spun out across financial sectors in the U.S. and overseas.
Deutsche Bank beat its first-quarter earnings and sales estimates on April 25. The company said it earned 74 cents a share on revenue of $18.6 billion. Earnings rose 13% vs. the year-ago period, while sales jumped 23%.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Deutsche Bank Stock Nears Buy Point
Deutsche Bank stock is approaching a 17.96 buy point out of a flat base, according to IBD MarketSurge chart analysis. If the stock breaks out, the 5% buy zone will top out at 18.86.
Within the base, the stock displays a bullish three-weeks-tight pattern. That's a sign of institutional accumulation. Meanwhile, shares are rebounding from their 50-day line, an important support level to watch. A decisive rebound would place the banking leader in a new buy area.
With IBD's recommended equity exposure range at 60%-80%, investors have the flexibility to raise and lower exposure.
Deutsche Bank stock boasts a strong 97 out of a best-possible 99 IBD Composite Rating, according to IBD Stock Checkup.
The relative strength line has some work to do ahead of a potential breakout. It remains relatively far from its highs in late April. The RS line should hit a new high on the breakout day or shortly thereafter to reaffirm the stock as a market leader.
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Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Texas Roadhouse | 157.12 | Flat base | |
| PDD Holdings | 142.32 | Cup with handle | |
| Interactive Brokers | 112.50 | Tight area |
Source: IBD Data As Of May 21, 2024
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