Occidental Petroleum leads your stocks to watch for the upcoming week. Egg producer Cal-Maine Foods, BJ's Wholesale Club and Hershey are riding higher prices for food. Ulta Beauty is setting up again after multiple failed attempts in the past. All the stocks are either in bases or near key support levels.
The market has shifted into a confirmed uptrend as the major indexes rose strongly for the week amid a huge wave of earnings, economic data and a big Fed rate hike. While the market is on the mend, investors should still add exposure carefully.
Occidental Petroleum Stock
Occidental Petroleum is holding up better than most of its energy peers. That's partially due to OXY stock's status as a personal favorite of investing guru Warren Buffett. His Berkshire Hathaway has increased its holdings to nearly a 20% stake in the company.
Rebounding energy prices also are helping.
OXY stock is in a stage 2 consolidation. It's currently trading above its moving averages after making big jumps over its 10-day line and 50-day line on Friday.
MarketSmith shows an official buy point of 74.14. But a push above OXY stock's July 26 intraday high of 66.05 could offer an early entry from the 50-day line.
But note: Occidental Petroleum reports earnings Tuesday. That makes buying OXY stock before then highly risky.
Analysts predict Occidental earnings will skyrocket 846% to $3.03 per share and revenue will spike 63% to $9.77 billion.
Occidental Petroleum, and oil and natural gas giant, is working to achieve net-zero emissions through its investments in carbon management. OXY stock has a perfect 99 Composite Rating and EPS Rating of 77.
Fueling Oil Industry Carbon Capture: Production, Net Zero, ESG
Cal-Maine Stock
Cal-Maine is the largest egg supplier in the U.S., particularly for the Southeast. CALM stock reversed lower this week, finding support modestly above the 50-day and 10-week moving averages. On a weekly chart, CALM stock now has a handle. The cup-with-handle base buy point is 57.85 on the weekly chart. The handle needs one more day to sow up on a daily chart.
Cal-Maine's mid-July fourth quarter results beat Wall Street expectations. CALM earnings jumped to $2.25 per share vs. a loss of 9 cents the year prior. And revenue soared 70% to $593 million, the fourth straight quarter of accelerating growth.
Earlier this week, Cal-Maine's relative strength line hit a new high, indicating it's outpacing the broader market. CALM stock has a Composite Rating of 98 and an EPS rating of 77.
Hershey Stock
Hershey, IBD's Stock Of The Day for Thursday, posted sweet earnings results that day, with sales growth accelerating for a second straight quarter. HSY stock nearly broke out on Friday, while already being in range of an aggressive entry.
HSY stock is in a flat base with an official entry of 231.69. But it cleared resistance just above 222 on Thursday, then added to gains Friday.
HSY stock has a Composite Rating of 97 and a RS Rating of 93. Hershey is on an earnings growth streak and has an EPS rating of 90.
BJ's Stock
The IBD Stock Of The Day last Tuesday, BJ's Wholesale Club is also a stock to watch for the week ahead. BJ's is outperforming its retail peers as its food and gas sales offset cuts in consumer spending.
BJ stock has a double-bottom buy point of 71.10. Shares ran up from their late May lows up to the buy point in July, flirting with a breakout a few times, but then pulling back.
Its found support around the 21-day moving average, essentially forming a handle.
One issue is that BJ stock's advance from the lows generally came on light volume, a problem for many would-be leaders in recent weeks.
The double-bottom base is a fourth-stage pattern. Bases of third-stage or later are considered late stage bases, which carry more risk than earlier-stage bases.
BJ's reports results on Aug. 8. The wholesaler has posted five consecutive quarters of sales growth and posted an average earnings surprise of 20.8% over the past two years. BJ stock has a Composite Rating of 97 and an EPS rating of 95. Its RS Rating is 93.
Ulta Stock
Ulta Beauty is one of a few beauty stocks performing well. It's posted five consecutive quarters of earnings and revenue growth. But ULTA stock fell 3% Friday to 388.91, dropping below its 50-day line. Shares are clinging just under their 200-day line where they found support last week.
ULTA stock has moved sideways for nearly a year amid a series of failed breakouts. It's currently in a flat base with a buy point of 429.58. But investors looking for an earlier entry point could use 417.08, just above ULTA's July 22 peak.
ULTA has a 96 Composite Rating and an EPS Rating of 90.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
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