The S&P 500 has fallen for the past two weeks, but there are plenty of stocks showing strength. Oil services giant SLB is in a buy zone. Mastercard also is in a buy area, and is close to other entries. Carnival is testing support within a new base. Arista Networks isn't far from a buy point following an earnings gap up. Meanwhile, KB Home constructed a rare trading pattern.
The market rally is under heavy pressure, with the Nasdaq below its 50-day moving average. The S&P 500 has held that level, and many non-tech sectors are holding up. But investors should be careful.
SLB
SLB, formerly known as Schlumberger, barreled above a buy point last week, as oil prices rose for a seventh straight week, to their highest levels since last August. The oil service giant ranks second in the Oil & Gas-Field Services Group, which is led by Tidewater, according to the IBD Stock Checkup.
SLB was the Aug. 9 IBD Stock Of The Day and added to SwingTrader.
Shares broke out Aug. 9 and are trading in a buy zone, just above the 58.70 buy point for a cup-with-handle base.
SLB stock has a near-perfect 98 Composite Rating out of a best-possible 99. The Composite Rating combines various technical indicators into one easy-to-read score. Shares have an 89 EPS Rating. The stock's relative strength line fell from January highs and has a 92 RS Rating.
Arista Networks
Cloud networking giant Arista Networks trounced forecasts for Q2 results on July 31. Arista earnings increased 46% to $1.58 per share, compared to estimates of $1.44. Revenue jumped 39% to $1.46 billion, vs. forecasts of $1.38 billion. Analysts expect Arista's artificial intelligence network offerings to start driving growth around 2025.
ANET stock is a member of the IBD 50 list and ranks second in the Computer-Networking Group, according to the IBD Stock Checkup.
Shares vaulted past a 178.36 buy point on Aug. 1 following earnings. ANET stock has since pulled back in declining volume, closing Friday at 174.94. The moving averages are starting to catch up.
The tight action is constructive after wild action in recent months, and showing resilience amid a tech-led pullback.
Arista has a 98 Composite Rating and 98 EPS Rating. ANET stock has a 93 RS Rating.
KBH Stock
KB Home was Thursday's IBD Stock Of The Day. Homebuilders rallied aggressively this year as rising interest rates have slowed sales of existing homes, driving demand and pricing for new homes. The Building-Residential/Commercial industry group bolted nearly 38% higher so far in 2023.
KBH stock is in an ascending base that started in mid-May. Ascending bases are uncommon and generally form in stocks eager to move higher.
The base has a 55.37 buy point and has held support at KBH stock's 21-day exponential moving average. The stock broke below the 21-day line on Thursday, extending losses Friday, as rising Treasury yields signal higher mortgage rates
KBH stock is hovering above its 50-day moving average.
Year to date, shares soared nearly 65% and are trading near their highest levels since 2007.
KBH stock has a 94 Composite Rating and an 83 EPS Rating. Its relative strength line is shy of recent August highs and has a 95 RS Rating.
Carnival
Carnival sailed nearly 108% higher this year as cruise lines saw a massive wave of bookings while the travel industry rebounded. The IBD 50 member announced total customer deposits hit a record $7.2 billion in its Q2 earnings beat from late June and it expects to return to profitability in the second half of 2023.
CCL stock rallied nearly 34% after its second-quarter results on June 26. Shares have since pulled back from their July 5 high and are trading below the 19.55 buy point for a flat base.
CCL stock sank 3.3% on Friday to its 50-day moving average and slightly below the 10-week line. A strong rebound could offer an early entry, with last week's high of 18.13 offering a possible early entry.
Carnival has an 88 Composite Rating. Shares have a 63 EPS Rating as losses improved the last nine quarters. CCL stock's relative strength line is off early July highs and it has a 97 RS Rating.
Mastercard
Payments giants Visa and Mastercard are off to a strong start to the year as consumer spending proved more resilient than some economists expected. Spikes in transaction volume and cross-border payments fueled earnings beats for both companies the past four quarters.
MA stock is trading in the buy range for a flat base with a 392.20 buy point. Mastercard also has a five-weeks-tight pattern within the buy zone, offering an alternative entry at 405.19. Investors could use Thursday's high of 400.63 as an earlier entry.
MA stock has an 87 Composite Rating and an 86 EPS Rating. Mastercard's relative strength line fell from January highs and it currently has a 75 RS Rating.
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