Magnificent Seven member Meta Platforms leads this week's list of stocks to watch near a buy point. Sports betting company DraftKings, oilfield services firm Weatherford International, discount chain Ollie's Bargain Outlet and athleisure apparel maker Lululemon also make the list.
The market is back in a confirmed uptrend to start November bolstered by a pause on Federal Reserve interest rate hikes and Friday's jobs report and economic data.
Meta, Weatherford and DraftKings already have earnings out of the way. Lululemon and Ollie's Bargain Outlet don't report for a few weeks.
META Stock
Facebook parent Meta Platforms' adjusted earnings growth accelerated for the second quarter in a row, increasing 168% for Q3 results on Oct. 25. The social media colossus reported its fastest sales growth in two years to beat Wall Street forecasts.
However, Meta warned of an uncertain advertising environment for the fourth quarter. And the midpoint of its Q4 revenue guidance was shy of FactSet expectations, prompting a short pullback from the shares.
But they quickly found support. Meta, Monday's IBD Stock Of The Day, reclaimed its 50-day line and broke a short downtrend this week, offering an early entry.
META stock is a member of the IBD Big Cap 20 list and the IBD Leaderboard list. Shares were added to SwingTrader on Wednesday.
META stock vaulted more than 161% in 2023.
DKNG Stock
DraftKings spiked 16.5% Friday on its beat-and-raise earnings report. The Boston-based sports betting giant recorded narrower losses ahead while revenue spiked 57% to $790 million, driven by healthy customer engagement, expanded sportsbook offerings to additional states and efficiently bringing in new customers.
DraftKings reported a 40% spike in average monthly unique players (MUPs) to 2.3 million with a 14% increase in average revenue per MUP.
DraftKings upgraded its full-year revenue outlook to range from $3.67 billion to $3.72 billion, representing up to 66% growth. It previously guided revenue to $3.46 billion-$3.54 billion.
The company sees fiscal 2024 sales ranging from $4.5 billion to $4.8 billion.
DKNG gapped above its 50-day line after earnings, breaking well above a trendline. Shares surged past an early entry opportunity at 31.10 and yet another entry at 32.65 DKNG stock is approaching the official 34.49 buy point for a consolidation.
While actionable Friday morning, at this point, DKNG seems extended from its 50-day line. Investors may want to look for a pause or pullback for a safer entry at this point.
DraftKings' relative strength line hit a new 52-week high Friday. Shares have a near-perfect 97 RS Rating out of a best-possible 99.
DKNG stock nearly tripled this year and is a member of the IBD Leaderboard Leaders list.
WFRD Stock
Houston-based oil field equipment and services company Weatherford International topped expectations for Q3 results on Oct. 24 and raised its full-year outlook. Weatherford reported a 315% earnings increase to $1.66 per share while revenue rose 17% to $1.31 billion. International revenue leapt 27% due to a boost in activity in Saudi Arabia, which helped fuel the revenue growth, according to management.
The company expects continued revenue growth in the fourth quarter with adjusted EBITDA margins to expand by over 400 basis points. Weatherford guided adjusted free cash flow of over $450 million, compared to its previous outlook of $400 million.
FactSet analysts see a 490% EPS increase for the full year.
WFRD stock relisted on the Nasdaq in June 2021 after Weatherford entered Chapter 11 bankruptcy protection in July 2019.
Weatherford was added to SwingTrader on Wednesday.
WFRD stock is trading in a buy zone for a short cup-with-handle base after rising above the 97.88 buy point Thursday. The buy zone, which stretches 5% beyond a buy point, extends to 102.77. Weatherford's relative strength line is trending at highs with a 98 RS Rating.
Shares soared last week even as crude oil prices tumbled.
WFRD stock nearly doubled in 2023 and is trading at record highs since its Nasdaq relisting.
OLLI Stock
Ollie's Bargain Outlet is among a number of discount retailers performing well as consumers look to trade down and cut costs ahead of the holiday shopping season.
Ollie's Bargain Outlet earnings growth accelerated the past four quarters and bolted 205% on Q2 results in August. The Harrisburg, Pa.-based discount chain reported improving sales growth the last three quarters, with revenue climbing 14% in its second-quarter.
For Q3, analysts polled by FactSet expect 19% earnings growth to 44 cents per share on 12% revenue growth to $468 million. Ollie's Bargain Outlet has not yet released its earnings date.
OLLI stock is a member of the IBD Leaderboard watchlist.
Ollie's is attempting to break out above the 80.94 buy point for a flat base Friday after clearing a trendline entry earlier in the week.
Shares climbed the last 10 trading days. However, the recent winning streak has been on below-average trading volume.
OLLI stock rallied 71% year to date.
LULU Stock
Nike stock roared back to life in October as one of the top performers in the Dow Jones Industrial Average. The same can't be said for the Retail-Apparel/Shoes/Accessories industry group as a whole, which saw just 16 of its 34 stocks rise over the past month. Lululemon is among those showing strength and climbed roughly 4% in that time period.
LULU stock was added to the S&P 500 index on Oct. 18 to replace Activision Blizzard after Microsoft closed its $69 billion acquisition of the video game producer.
Athleisure clothing maker Lululemon reported double-digit earnings and revenue gains the past three quarters, though sales growth slowed over that period.
LULU stock is a member of the IBD 50 list.
LULU stock popped from its 50-day line this week, breaking a trendline that started in mid-October. Lululemon moved back above a still-valid 406.94 buy point from a flat base.
Shares have rallied more than 27% in 2023.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
