S&P 500 stocks T-Mobile, Axon Enterprise Bank of America and Royal Caribbean are in focus for this week's stock market. Sea is also a stock to watch.
The stock market rally ended last week on a sour note, falling Friday amid inflation and Trump tariff fears. The Nasdaq fell below its 50-day line. Ultimately, the market is rangebound.
However, a number of leading stocks showed bullish action.
With this is in mind, investors should keep an eye on these five stocks as they assess current holdings and work on watchlists. T-Mobile, Bank of America and Royal Caribbean have already reported quarterly figures, while Axon and Sea are weeks away.
Investors can also 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.
S&P 500: T-Mobile Stock
T-Mobile shares jumped 5.7% to 246.24 in last week's stock market action. On Friday, shares reversed slightly lower after briefly hitting a record high and topping a 248.15 buy point in a nine-week cup base, according to MarketSurge charts. TMUS stock is already actionable from clearing an almost handle earlier in the week.
T-Mobile on Jan. 29 gave strong guidance after an easy earnings beat for the fourth quarter. Chief Executive Mike Sievert proclaimed that 2024 was the "biggest growth year ever in our history," in a CNBC in an interview, adding "that is just because 2025 hasn't happened yet."
T-Mobile Earnings Accelerate For A Third Consecutive Quarter
T-Mobile outpaced Verizon and AT&T in core subscriber growth. In Q4, the wireless company added nearly twice as many subscribers as its rivals. Those rivals delivered largely in-line results and tepid guidance last week.
T-Mobile delivered earnings of $2.57 a share, beating analyst estimates for $2.29 a share, according to FactSet. Revenue rose 6.8% to $21.87 billion, also above views for $21.33 billion. Year over year, T-Mobile earnings surged 54% and sales rose 7%.
In 2025, T-Mobile expects to add 5.5 million to 6 million postpaid connections, the highest guidance the company said it has ever given at the start of a year. That would be roughly double the 3.1 million new postpaid connections in 2024.
The S&P 500 stock has a robust 95 Composite Rating. TMUS also has an 89 Relative Strength Rating and a 97 EPS Rating.
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S&P 500: Bank of America Stock
Shares of the money center bank gained 2.4% to 47.40 on the week. Bank of America stock cleared a 47.51 buy point from a cup-with-handle base on Thursday, before edging back on Friday. The S&P 500 stock has risen nearly 8% to begin 2025.
On Jan. 18, Bank of America disclosed that it more than doubled earnings in the fourth quarter as revenue rose 15%. It beat analyst estimates on both the top and bottom lines.
More broadly, bank stocks have rallied on hopes for looser regulations under President Donald Trump. The new administration's tax and tariff policies could be inflationary, and are under watch.
Bank of America is also one of Warren Buffett's biggest stock holdings, along with Apple stock.
The S&P 500 banking stock has a strong 93 Composite Rating. Bank of America also has an 85 Relative Strength Rating and an 80 EPS Rating.
Sea Stock
American depositary shares of the Singapore-based online retailer rose 1% to 123 for the week. Shares are above the 50-day line and about 3% above a 119.47 buy point from a shallow cup or flat base.
Earnings last year show Sea is growing more profitable while also accelerating its sales growth. Its Shopee platform has emerged as a leader in the competitive Southeast Asia e-commerce market, though there are fears of TikTok cutting into share. Its other businesses include SeaMoney for digital payments and Garena for online games.
Sea Cruises To 162% Gain As Southeast Asia E-Commerce Leader
The stock rocketed 162% last year and is up around 17% so far in 2025.
As highlighted in a recent New America profile, Sea's gains have been powered by accelerating growth and a return to core profitability for its e-commerce operations.
In its most recent Q3 results published in November, Sea swung to a profit of 24 cents per share vs. a 26 cents per share loss for the same period a year earlier. Sales jumped 31% to $4.3 billion. That marked Sea's fastest growth since the first quarter of 2022.
The company is expected to report Q4 earnings in early March, with analysts projecting EPS coming in at 62 cents, up from a loss of 19 cents per share a year ago. Sales are forecast to grow 29%, according to FactSet.
Sea has a strong 97 Composite Rating. The shares also have a 97 Relative Strength Rating and a 39 EPS Rating.
Royal Caribbean Stock
The S&P 500 cruise giant advanced 1.5% on the week's stock market action to 270.66 and is at the at the top of a buy zone from a cup base buy point of 258.70. However, investors could also use its recent high of 277.08 as a high handle entry. This comes after Royal Caribbean cleared an early buy point of 250.11.
Meanwhile, rival Carnival slumped 0.5% on the week and is just below a 27.16 flat base entry. River cruise operator Viking jumped 4.6% this week and is extended above a 47.62 entry.
On Jan. 28, Royal Caribbean reported a 30% increase in earnings to $1.63 per share adjusted, beating FactSet expectations for $1.50 per share. Revenue jumped almost 13% to $3.76 billion, which matched analyst views.
The company noted that bookings have accelerated since its last update, resulting in the best five-week booking period in its history. Meanwhile, booked load factors remain in line with prior years, and at higher rates. Guest spending for onboard and pre-cruise purchases continues to exceed previous years, driven by greater participation levels at higher prices, Royal Caribbean reported.
"Our strong booked position allows us to optimize our yield profile and drive margin expansion and strong financial returns," Chief Financial Officer Naftali Holtz said in the earnings release.
Royal Caribbean forecasts 2025 adjusted earnings will range from $14.35 to $14.65 per share. The S&P 500 company expects its net yield increases will ranging from 2.5% to 4.5% on a constant currency basis. The cruise line anticipates $1.17 billion in fuel expenses for the year.
The S&P 500 stock has a near perfect 98 Composite Rating. Royal Caribbean also has a 95 Relative Strength Rating and a 72 EPS Rating.
S&P 500: Axon Stock
Axon stock advanced 4.15% to 679.24 last week, moving up the right side of a cup base. The S&P 500 stock is nearing a traditional 698.67 buy point
That entry is also the all-time high reached on Dec. 6, following a 49% run-up after Axon reported third-quarter results on Nov. 7.
Axon Enterprise was Thursday's pick for IBD 50 Growth Stocks To Watch and is recovering from a 22% drop that began after the stock reversed from its December high.
Axon Stock Looks To Continue Triple-Digit Run As It Nears A Buy Point
The stock pulled back to begin forming the base in lighter-than-average volume and undercut its 10-week moving average, triggering a sell signal in early January. But shares have reclaimed the 10-week line.
Shares have climbed around 14% so far this year, after soaring by 130% in 2024.
In addition to its close-range Taser energy weapons, Axon makes body and fleet cameras, along with drones and evidence management software. Its equipment is used by law enforcement, federal departments, U.S. armed forces, and corrections and security officers.
Axon topped third-quarter adjusted earnings and sales estimates on Nov. 7, and gave a fourth-quarter revenue outlook that was above views. Profit rose 38% on a 32% sales increase.
Fourth-quarter forecasts call for a 25% profit boost with sales rising 31%. Full-year 2024 earnings estimates called for 24% growth and have been recently revised up to 22% in 2025. Although a date has not been announced, Axon normally reports its fourth-quarter results toward the end of February or early March.
Axon stock is on IBD SwingTrader and the IBD Leaderboard watchlist.
The S&P 500 stock has a 98 Composite Rating, a 97 Relative Strength Rating and a 76 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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