Intuit and GitLab lead five stocks to watch that are flashing bullish signals as they rebound off support toward buy points. Royal Caribbean, Skechers and Affirm Holdings also make this week's list of stocks to watch.
Skechers was added to SwingTrader on Jan. 8 and Royal Caribbean joined on Thursday. Meanwhile, GitLab ranks on the Leaderboard Watchlist.
Royal Caribbean
Royal Caribbean is trending back toward its record highs from January 2018 after the cruise line operator reported better-than-expected Q3 earnings and sales on Oct. 26, and raised its full-year profit guidance. For the company's Q4 results on Feb. 1, FactSet expects Royal Caribbean to report full-year earnings of $6.61 per share after three years of losses. Its FY2024 earnings are seen improving even further to $9.16 per share.
RCL stock has bounced off support at its 21-day exponential moving average as well as its 10-week line. It was the first pullback to the 10-week line since Royal Caribbean cleared a cup base in early December. That offered a new buying opportunity.
Shares are working on a possible new base, but it needs a few more weeks.
It's currently trading in a buy zone above a 124.45 entry.
RCL stock has an 89 Composite Rating out of a best-possible 99. The Composite Rating combines various technical indicators into one easy-to-read score. Shares have an 82 EPS Rating as earnings swung back into positive territory the past two quarters.
Royal Caribbean's relative strength line has fallen from its late December highs but still has a near-perfect 97 RS Rating.
GitLab
Software development tool provider GitLab was the IBD Stock Of The Day for Wednesday.
The company reported positive earnings on triple-digit growth the last two quarters. But revenue gains have slowed for six consecutive quarters. GitLab stock surged in early December after beating Q3 estimates with adjusted earnings of 9 cents per share, improving from a loss of 10 cents per share last year.
San Francisco-based GitLab raised its 2024 revenue guidance by $17.5 million during the report and management said it expects to achieve positive full-year earnings on an adjusted basis.
FactSet forecasts full-year adjusted earnings of 13 cents per share, compared to a loss of 46 cents last year. Analysts expect revenue to increase more than 35% to $574.4 million.
GTLB stock consolidated after its early-December earnings rally before retreating to start the new year. Shares this week rebounded strongly off their 21-day line, offering a buying opportunity during the week. But GitLab was extended from the 21-day line by Friday's close.
Investors also could use 67.55 as a buy point for a short consolidation, with GTLB stock just clearing that level Friday.
GitLab has a 98 Composite Rating. The relative strength line is at a 52-week high while the stock has a 96 RS Rating.
Affirm Holdings
Fintech company Affirm Holdings specializes in "buy now, pay later" services for e-commerce and in-store purchases. Affirm boasts nearly 17 million active customers and recorded more than $21 billion in gross merchandise volume over the 12 months through Sept. 30, 2023.
For its most recent Q1 earnings report, Affirm posted a loss of 57 cents per share, significantly improving from its loss of 86 cents per share the year prior. Meanwhile, revenue leapt 37.3% to a record $497 million. Analysts expect Affirm to report a loss of 73 cents per share for its Q3 results on Feb. 8 as revenue increases nearly 30% to $519 million.
AFRM stock is finding support at its 10-week moving average after bolting about 138% from November through December. Shares have since fallen from their December high of 52.48 to slide below short term support last week. A rebound above its 21-day line at 42.75 would break a downtrend and could offer aggressive investors an entry opportunity.
Affirm has a 99 RS Rating and a 71 Composite Rating. Shares have a 31 EPS Rating as Affirm has yet to report a profit following its IPO in 2021.
AFRM stock surged 5.1% Friday, closing the week up 0.9%. A move above the 21-day line would offer an early entry from that 10-week line rebound.
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Intuit
Intuit stock is shaping up nicely with tax season right around the quarter. The tax filing software provider recorded 13% revenue growth to $14.37 billion in FY23, according to its annual shareholder presentation on Jan. 18. Adjusted earnings increased 22% for the year to $14.40 per share.
Intuit reported double-digit earnings growth the last four quarters. Meanwhile, sales growth accelerated to 15% from 7% over the last two quarters.
INTU stock broke out from a double-bottom base in mid-November before sliding in early January. Shares jumped off their 21-day and 10-week lines this past week, offering investors a 615.67 buy point as it surpassed its Jan. 11. high on Friday.
Intuit leads the Computer Software-Financial Group according to the IBD Stock Checkup.
INTU stock has a perfect 99 Composite Rating and a 98 EPS Rating. Intuit's relative strength line is hovering near 52-week highs and it has a 91 RS Rating.
Skechers
Footwear maker Skechers rallied about 42% from its late-October lows after reporting a 53% adjusted earnings jump in Q3 to 98 cents per share, beating Wall Street forecasts and marking three quarters of accelerating growth. Third-quarter revenue climbed 8% to a quarterly record $2.025 billion but was just a whisker away from analysts views for $2.027 billion.
Skechers guided fiscal 2023 earnings to $3.33-$3.43 per share on $7.95 billion-$8.05 billion in revenue. However, Wall Street forecasts $8.13 billion in sales with earnings of $3.42 per share.
SKX stock bounced off its 21-day line last week, offering an early entry. Shares hit a record high on Friday, clearing a short consolidation, still in range of the 21-day.
Skechers leads the Apparel-Shoes & Related Manufacturing Group according to the IBD Stock Checkup.
The stock has a 99 Composite Rating, 93 EPS Rating and a 91 RS Rating.
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