Gold stock Anglogold Ashanti, GE Aerospace and Berkshire Hathaway are on our stock watchlist this week. Ryan Specialty Holdings and EverQuote are also among the top stocks to watch.
All five top stocks trade near buy points. Anglogold stock, Berkshire stock and GE stock are in buy range. Insurance stocks Ryan Specialty and EverQuote are just below buy points after finding key support.
Still, IBD advised paring stock market exposure to the lowest level amid a sharp sell-off, led by growth stocks on recession fears. Stocks at large slumped below long-term support but bounced back on Friday. Investors may consider preparing watchlists for the next uptrend rather than making outright purchases.
The relative strength lines for the top stocks near buy points this week are trending higher or improving. A rising RS line, the blue line in the charts shown, means a stock is outperforming the S&P 500 index.
Gold Stock Anglogold Ashanti Shines
Shares of Anglogold Ashanti gained 2.5% to 32.26 for the week, rebounding from the 21-day exponential moving average and 10-week line.
The move put Anglogold back in buy range from a 31.46 double-bottom breakout in early February. The gold stock is shaping a new consolidation with a potential 33.77 buy point right on top of that prior base, according to the MarketSurge chart.
AU stock earns a perfect IBD Composite Rating of 99. It shows a solid EPS Rating of 80 and a superior RS Rating of 95, also out of a best-possible 99. A 95 RS Rating means that this gold stock has outpaced 95% of all stocks in IBD's database over the past year.
Anglogold grew gold production last year, capped by a robust Q4 for its managed operations.
In 2024, the U.K.-based global gold mining company swung to earnings of $2.21 per share vs. an 11-cent loss the year before, FactSet shows. Free cash flow swelled ninefold — to almost a billion dollars.
The company tightened cost controls and improved efficiencies, which "allowed us to capture the benefit of a healthy gold price," Anglogold CEO Alberto Calderon said in a Feb. 19 earnings release.
A balance sheet "at its strongest position in well over a decade" and "increased confidence" in the company's outlook had resulted in "a more generous dividend policy," the release added.
The gold stock currently offers a 2.81% dividend yield. The IBD Stock Checkup tool shows that Anglogold Ashanti boasts seven quarters of increasing mutual fund ownership of its shares.
Year to date, AU stock holds a 39.75% gain vs. a 4.1% decline for the S&P 500.
On Tuesday, IBD selected Agnico gold stock as Stock Of The Day as it broke out bullishly. Gold investing gains popularity during tough economic times and recessions, and demand drives up gold prices as well. A generally weaker dollar also has buoyed precious metals.
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GE Stock Retakes Buy Point From Key Support
Shares of GE Aerospace rebounded 1.7% for the week, finding support at the 50-day / 10-week lines.
On Friday, GE stock rose 2.4% to to 197.11, regaining a still-valid 194.80 buy point. It first cleared that entry amid an earnings breakout on Jan. 23. During the sell-off, shares briefly undercut that entry without triggering a sell signal.
Investors may want to wait for a decisive clearing of the 21-day line and breaking a short downtrend in an emerging new consolidation.
On Thursday, IBD chose GE Aerospace as Stock of the Day as it tested the 50-day and the buy point. The jet-engine giant also vowed to invest nearly $1 billion to strengthen U.S. manufacturing.
The defense and aerospace stock holds a Composite Rating of 97, EPS Rating of 95 and RS Rating of 93.
In 2024, GE Aerospace increased adjusted earnings per share by 56% as .7adjusted revenue grew 10%, its annual report shows. Free cash flow swelled 28% over the full year.
Analysts expect an 18% GE earnings gain in 2025 and a further 19% rise in 2026, FactSet shows.
Very few companies in the world know how to make the complex engines needed to power commercial and military jets. GE Aerospace is one of a few that do. That gives it an enviable moat that stands out in the current down market.
Year to date, GE stock carries an 18.2% gain.
Berkshire Hathaway Stock Sizzles
Class-B shares of Berkshire Hathaway rallied 3.8% for the week. The move returned Berkshire stock to near the top of the 5% buy zone from its latest breakout.
BRKB stock topped a 484.72 cup-shape buy point in late February on an earnings gap-up. Its RS line has bolted to highs despite the recent volatility in the broader stock market. Or maybe because of it.
Insurance stocks tend to outperform during tough times or a recession. Although Berkshire Hathaway is a conglomerate, insurance (and reinsurance) is its flagship business.
Berkshire also holds over $300 billion in cash.
In late February, Warren Buffett-led Berkshire Hathaway crushed fourth-quarter earnings estimates, aided by strong insurance results.
For full-year 2024, Berkshire's insurance business grew operating earnings by 51%, including a 66% underwriting gain and 43% jump in investment income. Excluding insurance, the company's operating income grew by 11% last year.
Berkshire was Friday's IBD Stock Of The Day.
Berkshire Hathaway stock owns a Composite Rating of 93, EPS Rating of 92 and RS Rating of 90.
Year to date, BRKB stock has jumped 13.5%.
Insurance Stocks Ryan Specialty And EverQuote
Shares of Ryan Specialty gained 0.9% for the week after finding support at the 50-day / 10-week lines.
Ryan stock has been holding its 21-day line almost throughout the recent pullback, a favorable sign. It continues to work 71.33 buy point from a cup-with-handle base, now just 3% below the entry.
IBD selected Ryan Specialty as Stock Of The Day on Wednesday as it found key support.
The specialty insurance firm holds a Composite Rating of 99, EPS Rating of 97 and RS Rating of 88.
Ryan Specialty's earnings rose 29% in the fourth quarter, edging up from Q3's 28%. Revenue climbed 25% to $663.5 million, with growth picking up for a second straight quarter.
Year to date, Ryan stock has climbed 8.9%.
Insurance peer EverQuote shows a 26.99 buy point from a 31-week cup-with-handle base. EverQuote stock forged the handle after a nearly 30% earnings breakaway gap in the final week of February. On Friday, shares cleared the downtrend in the handle, offering an early entry.
The company operates an online marketplace for insurance shopping. It connects consumers with insurance provider customers.
EVER stock earns a Composite Rating of 99, EPS Rating of 80 and RS Rating of 95.
Year to date, this insurance-related stock has soared 33.1%.
Why Invest In Gold Stocks And Insurance Stocks Now
Gold stocks and insurance stocks provide investors a defensive edge in turbulent markets. They are thriving now amid broader market weakness. But safe-haven plays could fall back if the economy or market become more uncertain.
Several of these stocks can be found on top IBD lists right now, including IBD Leaderboard and the IBD 50 list of top growth stocks. The names include Agnico Eagle Mines, Alamos Gold, Barrick Gold, Arthur J. Gallagher, Aon, Brown & Brown, Newmont, Progressive and Royal Gold.
Other top IBD lists to check out include Long Term Leaders, the Big Cap 20 and SwingTrader.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
