The bear market has stocks looking like they've gone more than a few rounds in the ring with WWE superstar John Cena in his prime. But World Wrestling Entertainment has managed to fight off much of the damage. WWE stock continues to form a handle as its relative strength line hits a new high.
Because of its strength and resilience amid widespread carnage in the market indexes, WWE was featured in this column on May 16 and in The New America on May 19. WWE stock has also earned a spot on the IBD 50 and IBD Leaderboard.
The stock earns a 96 Composite Rating, showing it's outpacing 96% of all stocks in terms of key fundamental and technical traits. It holds the No. 1 ranking among its peers in the diversified media industry group.
Bear Market News — And How To Handle It
WWE Expands 'Next In Line' Roster Of Star Athletes
Based in Connecticut, WWE is a leader in global entertainment. Its TV-PG programming can be seen in more than 1 billion homes worldwide in 30 languages. Distribution partners include NBCUniversal, Fox Sports, BT Sport, Sony India and Rogers.
In the U.S., NBCUniversal's streaming service, Peacock, is the exclusive home to the WWE Network.
Available in over 180 countries. the WWE Network includes premium live events, scheduled programming and a massive library of on-demand content.
WWE has just unveiled 15 new college athletes to expand the roster of its Next In Line program. The NIL moniker stems from a new NCAA policy that allows athletes to be compensated for their Name, Image & Likeness.
Launched in December, WWE's NIL program serves to recruit and develop future superstars. Resources provided to participating athletes include brand building, media training, communications, live event promotion, creative writing and community relations. Upon completion of the NIL program, select athletes may be offered a WWE contract.
All six athletes who graduated from the first NIL class have either signed or are in discussions to join WWE on a full-time basis.
WWE Stock Wrestles With Multiple Buy Points
Within this volatile and choppy market, World Wrestling Entertainment's base is one of the cleanest among growth stocks lately.
Like a wrestler getting pinned, slammed down and released from a chokehold, WWE stock has been put through the wringer — and survived.
Since the pandemic lows in 2020, WWE has flashed multiple buy points and breakouts, creating a wavy, seesaw look in its stock chart.
Among its recent setups, WWE stock formed a base showing a 63.81 buy point. The stock briefly cleared that entry in early April before pulling back to slip below its 50-day moving average.
After finding support at its 21-day line and retaking its 50-day benchmark, WWE set up its current cup with handle. The new buy point is 68.82. The handle is part of a yearlong base.
During that recent rebound, note that the stock flashed several days of heavy volume on the upside. Such signs of demand bode well for World Wrestling Entertainment once we get through the current market downturn.
While WWE stock continues to show relative strength and set up a possible new entry, keep in mind that bear markets bring most stocks down. Bucking that trend to post a sustainable climb is a tall order for any stock.
In the meantime, keep an eye on stocks like World Wrestling Entertainment that are holding up better than most. They are often the ones that take off when a follow-through day eventually arrives to signal a new uptrend.
On Monday, WWE stock reversed higher to close in positive territory in above-average volume.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
