S&P 500 components Constellation Energy, American Express and Howmet Aerospace, along with FTAI Aviation and DT Midstream, are in focus for this week's stock market action.
The stock market is trending lower, with even the Nasdaq dropping below its 50-day line.
Investors should be wary about new buys and trimming exposure overall. But keep working on watchlists, focusing on stocks showing relative strength and holding key levels.
It's a good time to keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list for the week's stock market start. With this is in mind, investors can track these five stocks as they assess current holdings.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
S&P 500: American Express Stock
American Express stock fell 3.15% to 293.30 during Friday's stock market trade, undercutting its 50-day line. However, the S&P 500 and Dow Jones stock is in a tight, six-week flat-base pattern.
AXP stock has a 307.82 buy point, which matches American Express' record high from Nov. 27, according to MarketSurge charts.
Truist on Monday initiated coverage of American Express with a buy rating and 350 price target. The company has competitive advantages and favorable long-term market factors, including a loyal high-end customer base and international reach, Truist analysts said. Those traits should outweigh some "recent questions that have started rising around sustainable growth," the firm wrote.
American Express has averaged 22% earnings growth and 10.7% revenue growth over the last three quarters, although gains have slowed.
For Q3, American Express reported a 6% earnings gain to $3.49 per share adjusted; that beat FactSet expectations of $3.29. Revenue rose 8% to $16.64 billion but fell short of views for $16.67 billion.
Rivals Mastercard and Visa have also pulled back from their recent record highs after their breakouts in September and October, respectively.
American Express was Wednesday's IBD Stock Of The Day.
The S&P 500 stock has a 94 IBD Composite Rating out of a best-possible 99. The stock also has a 90 Relative Strength Rating and an 87 EPS Rating.
FTAI Aviation Stock
FTAI shares rose 3.1% to 174.02 during Friday's stock market trade, briefly moving above a traditional 177.18 buy point from a cup base, according to MarketSurge.
The stock soared 210% in 2024 and has continued its hot run in 2025, advancing more than 20% so far in January. The relative strength line hit a record high Friday, a bullish sign.
But FTAI stock is significantly extended from the 50-day line.
The aerospace company specializes in aviation engine leasing and maintenance. FTAI owns a portfolio of more than 90 aircraft and 250 stand-alone engines.
FTAI has been surging since Dec. 31 on bullish 2025 guidance and new partnerships to sell some aircraft for an asset-light model.
The company collaborates with Lockheed Martin on its Montreal-based Module Factory. The facility is a commercial engine maintenance center focused on the repair and refurbishment of engines.
The company reported mixed third-quarter earnings and revenue on Oct. 30, with profit growing 130% but coming in slightly below analyst expectations. FTAI Aviation did not turn a profit from 2020-22 but ended that streak in 2023. However, analysts expect a loss of 27 cents per share in 2024 before rebounding to a $5.10 profit in 2025, according to FactSet.
FTAI stock has a 93 Composite Rating. The stock also has a robust 97 Relative Strength Rating and a 38 EPS Rating.
S&P 500: Howmet Aerospace Stock
Fellow aerospace stock Howmet fell 2.1% to 113.64 on Friday, still just above the 50-day and 21-day lines. Shares flashed an early entry on Wednesday as they bounced from the 50-day line. Investors could use Wednesday's high of 115.16 as an early entry now.
On a weekly chart, the S&P 500 stock has a flat base with a traditional buy point of 120.71, according to MarketSurge. Howmet stock is on the IBD 50 list of top growth stocks.
On Nov. 6, the defense supplier cleared third-quarter earnings estimates, with profit growing more than 50%.
"Turning to 2025, the demand outlook for commercial aerospace remains robust, driven by healthy air traffic growth," Plant said in the release. "The underproduction of aircraft in recent years has resulted in a very large order backlog which, combined with the significant needs for additional engine spare parts, is supportive of future revenue growth."
Howmet expects above-trend growth in commercial aerospace to continue in 2025, along with gains in its defense aerospace and industrial end markets. But Howmet expects the commercial transportation end market will remain soft until the back half of 2025.
The company guided Q4 earnings of 70 cents to 72 cents per share, ahead of FactSet estimates for 69 cents. Howmet expects fourth-quarter revenue of $1.85 billion to $1.89 billion, in-line with estimates.
Howmet Aerospace lifted its 2024 earnings guidance to a range of $2.65 to $2.67 per share. Its previous outlook called for $2.53 to $2.57. The company forecasts 2024 revenue of $7.39 billion to $7.43 billion, slightly lower from its prior guidance for $7.4 billion to $7.48 billion. FactSet expects 2024 earnings to increase 40% to $2.59 per share on 12% revenue growth to $7.44 billion.
HWM surged more than 100% in 2024, placing it among the top S&P 500 performers, especially for a non-AI play. In January, the stock is up 4%.
The S&P 500 stock has a perfect 99 Composite Rating. The stock also has a 94 Relative Strength Rating and a 95 EPS Rating.
DT Midstream Stock
DTM shares dropped 2.15% to 103.49 during Friday's stock market. The stock is about 6% below a traditional buy point of 109.85 from a shallow cup base, according to MarketSurge.
DT Midstream and other natural gas pipeline and storage plays are performing well in the current market as U.S. natural gas prices have increased in recent weeks.
The stock jumped more than 80% in 2024 and has advanced around 4% so far in January.
The 47 stocks in the IBD-tracked Oil & Gas-Transport/Pipeline industry group collectively have gained nearly 5% in 2025 so far. Kinder Morgan is also edging closer to a traditional cup-base 28.81 buy point. That stock has gained 10% since bottoming at 25.78 on Dec. 18.
DT Midstream has a 92 Composite Rating out of 99. DTM also has a 94 Relative Strength Rating and a 72 EPS Rating.
Stock Market Breaks Key Support; What To Do Now
S&P 500: Constellation Energy Stock
CEG stock soared 25.2% to 305.19 during Friday's stock market trade, marking a breakout from a traditional buy point of 288.75. Shares are now slightly extended from the buy zone.
Investors could wait to see if CEG stock pauses for a few days, perhaps pulling back into the buy area.
Constellation Energy on Friday announced it is acquiring Calpine, a privately owned natural gas and geothermal power generator for $26.6 billion.
Shares tumbled 4.6% on Wednesday on reports of the deal, but closed above their 50-day line after diving to 228.05 intraday.
S&P 500 giant Constellation Energy stock had been consolidating since early October.
Constellation Energy reported Friday that the deal for Calpine is a cash-and-stock transaction valued at an equity purchase price of roughly $16.4 billion, composed of 50 million shares of Constellation stock and $4.5 billion in cash. It will also assume $12.7 billion of Calpine debt.
The company added that after accounting for expected Calpine cash generation between signing and the expected closing date, as well as the value of tax attributes at Calpine, the net purchase price is $26.6 billion. The transaction should close within 12 months of signing.
"By combining Constellation's unmatched expertise in zero-emission nuclear energy with Calpine's industry-leading, best-in-class, low-carbon natural gas and geothermal generation fleets, we will be able to offer the broadest array of energy products and services available in the industry," Chief Executive Joe Dominguez said in the press release Friday.
Constellation stock had moved higher to start 2025 after a 90%-plus gain in 2024, as the nuclear energy provider rode the artificial intelligence wave and the expected electricity demand surge from the data centers used to train AI models.
Constellation Energy stock has a 94 Composite Rating out of 99. Additionally, the S&P 500 nuclear stock has an 89 Relative Strength Rating and a 55 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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