S&P 500 members Intercontinental Exchange and Allstate lead this weekend's watch list of five stocks near buy points, showing resilience amid a market shakeout. The list also includes TG Therapeutics, fitness-club operator Life Time Group and aerospace supplier Heico, which Warren Buffett's Berkshire Hathaway has bought recently.
TGTX is part of IBD's Leaderboard portfolio of elite stocks that has currently been winnowed down to just eight names. Both TGTX and Heico are part of the flagship IBD 50 list of leading growth stocks.
S&P 500 Set-Up
The S&P 500 survived multiple tests of long-term support over the past week, rallying to the close in Friday stock market action. The encouraging end to a rough week could be a delayed reaction to possible signals from President Trump that he's going to tone down the disruptiveness of tariffs and Department of Government Efficiency efforts to slash federal spending.
After going ahead with 25% tariffs on imports from Mexico and nonenergy imports from Canada on Tuesday, Trump almost immediately began to walk back that move. Goods that comply with the U.S.-Mexico-Canada Agreement that Trump signed in his first term will be shielded from tariffs for at least 30 days. That includes auto imports from General Motors, Ford and Stellantis, among others. Trump also blunted Elon Musk's DOGE "hatchet," saying he wants Cabinet officials to direct further cuts with a "scalpel" going forward.
If Friday is the start of a more constructive trading environment, this weekend's watch list stocks may be be setting up for a move higher. However, stocks with strong fundamentals have been prone to breaking down lately. In the absence of a follow-through day for the S&P 500 or Nasdaq, investors are advised to stick to stocks that aren't especially volatile, those with an average true range of around 3 or below. That metric is available on IBD's MarketSurge.
Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.
ICE Stock
Intercontinental Exchange, operator of global financial exchanges, including the NYSE, was featured as IBD Stock Of The Day on Friday. On Wednesday, ICE reported February trading metrics highlighted by a 17% year-over-year increase in average daily volume. Energy-related volume led the way with a 23% increase, including 39% growth in natural gas trading volume.
ICE gapped up on Feb. 6 after Q4 earnings per share accelerated to 14%, while revenue growth slowed to 5.5%. Recurring revenue grew just 1% in the quarter, with transaction revenue, which can be more volatile, rose 11%.
ICE rose 0.35% to 170.24 on Friday, rebounding from the 21-day line and a 167.99 buy point from a 14-week consolidation. The buy zone runs through 176.39.
ICE sports an excellent 96 Composite Rating, a single rating that combines fundamental and technical factors, out of a possible 99, according to IBD Stock Checkup.
ICE has a 21-day ATR percentage of 1.6.
ALL
Allstate crushed Q4 earnings estimates on Feb. 5, as EPS surged 32% on 11% revenue growth. In a post-earnings note, William Blair analyst Adam Klauber highlighted better-than-expected margin performance, particularly for autos, "reflecting higher premiums and better severity and frequency trends."
Moderating used car costs and costs of repair are contributing to improved auto margins, he noted.
If the economic backdrop stays solid, that should benefit Allstate's interest income, which has benefited from the higher interest rate environment.
On Feb. 20, Allstate announced $1.07 billion in catastrophe losses in January related to the California wildfires. Days later, Allstate hiked its quarterly dividend 8.7% and authorized a $1.5 billion stock buyback, demonstrating its "strong financial position."
ALL rose 1.7% to 200.73 on Friday. Allstate currently sits 4% below a 209.88 cup-base buy point. However, Allstate may be one trading day away from having a 203.30 cup-with-handle buy point.
Allstate's relative-strength line, the blue line in IBD charts that tracks a stock's progress vs. the S&P 500, is at a 52-week high. That's confirmation of its market leadership, which can be a bullish sign when it precedes a breakout.
ALL has a 2.5 ATR.
TGTX
TG Therapeutics surged 27.75% into a buy zone over the past week, fueled by Monday's outlook for $540 million in sales of Briumvi, its treatment for relapsing forms of multiple sclerosis. The outlook includes $115 million in first-quarter U.S. sales of Briumvi.
The treatment, which competes against Roche's Ocrevue and Novartis' Kesimpta, requires hourlong infusions every six months. TG also is working on a subcutaneous, or under-the-skin, shot of Briumvi that would only need to be given every other month.
TGTX charged higher on Monday's earnings outlook, flashing an early entry opportunity as it surged past its 50-day moving average and broke above a downtrend from its late November peak.
Friday's 9.2% rise to 38.44 eclipsed a 36.84 buy point from a 14-week consolidation. The buy zone runs through 38.68.
TGTX is ranked No. 7 in the Medical-Biomed/Biotech industry group, according to IBD Stock Checkup.
TGTX has a 5.8 ATR.
HEI
Heico blew away fiscal Q1 earnings estimates on Feb. 26 as EPS surged 39% on 15% sales growth. Both divisions saw double-digit percentage organic growth on top of contributions from its steady stream of acquisitions.
Heico's flight support group designs, manufactures and repairs aircraft and engine replacement parts for commercial and military customers. The electronic technologies group makes power converters and accessories, microwave switches and lasers used in the aviation, electronics, medical and telecommunications industries.
Warren Buffett's Berkshire Hathaway opened a position in Heico in the second quarter of 2024, then added shares in Q3.
HEI vaulted 13.9% on Feb. 27 following its earnings beat. Last week, Heico nearly maintained its altitude, dipping 0.7% to 262.72.
With one more day of trading, Heico could have a 270.37 cup-with-handle buy point. The weekly MarketSurge chart already shows a 15-week cup-with-handle base.
Heico is ranked at the top of IBD's Aerospace/Defense industry group with a superlative 99 Composite Rating.
HEI has a 3.1 ATR.
LTH
Life Time Group Holdings operates more than 175 athletic clubs in the U.S. and Canada, including a new club in Evanston, Ill., that just opened last week. That club is just the second to include its MIORA Performance and Longevity Clinic.
In the news release, Life Time said the clinic reflects its multidimensional approach to "all aspects of health and wellness." It provides "a bloodwork and personalized assessment," hormone replacement therapy, infrared sauna, Cryo therapy and more.
Life Time posted 42% EPS growth on 19% sales growth on Feb. 26. Life Time's 10-K says it is "less susceptible to adverse economic conditions" due to its member base in affluent suburban and urban locations.
LTH slid 3.3% on Friday, but bounced above its 50-day moving average after the test of the key technical line. This was the first test of the 50-day since LTH broke out on Jan. 16 after pre-announcing Q4 results and an initial 2025 outlook.
LTH is ranked No. 1 in the Leisure-Services industry group, just ahead of S&P 500 member Uber.
LTH has a 3.7 ATR.
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