With the Nasdaq composite retaking its 50-day moving average Friday and the Dow Jones and S&P 500 index rebounding bullishly, more and more top stocks are breaking out or setting up near buy points. Nvidia (NVDA), Booking Holdings (BKNG), Cognizant Technology Solutions (CTSH), Worldpay (WP), Pegasystems (PEGA) and LGI Homes (LGIH) are growth stocks just below proper entries with earnings on tap this week.
All six top stocks have Composite Ratings above 90 out of a best-possible 99. The Composite Rating takes into account a variety of fundamental and technical factors. Top stocks usually have high Composite Ratings before launching big runs. Nvidia has a Composite Rating of 94, Booking Holdings a 95 CR, Cognizant a 93 CR, Worldpay a 96, Pegasystems a 91 and LGI Homes a 95.
Nvidia
Nvidia, which reports Thursday, is expected to report a 49% sales gain to $2.89 billion as earnings swell 84% to $1.45 a share. Its graphics chips are used in everything from PC gaming to artificial intelligence to Bitcoin mining.
The stock has formed a double-bottom base with a buy point of 239.35. It rose 2.6% on Friday to 239.05, retaking its 50-day line.
Nvidia has a had long run and is in a late-stage base. Late-stage bases can work, but they are more prone to failure and less likely to reap big gains.
Booking Holdings
Booking Holdings is expected to report EPS of $10.70, up 8%, while revenue climbs 19% to $2.874 billion. Formerly known as Priceline, the online travel site has a consolidation buy point of 2,229.09. Booking stock closed Friday at 2,174.96.
Cognizant Technology Solutions
Cognizant Technology reports early Monday. The IT services firm’s earnings should jump 25% to $1.05 a share as revenue grows 10% to $3.901 billion. Cognizant rose 1% to 82.17, back above its 50-day line. It’s close to an 85.20 flat-base buy point.
Worldpay
Worldpay, forged from Vantiv’s takeover of U.K.-based Worldpay, is one of many new top stocks in the payments field.
Shares closed Friday at 83, up 2% and back above its 50-day line. The stock is in a flat base with an 85.63 entry. You could also view Worldpay as being in a very shallow double-bottom pattern with an 83.94 entry.
Worldpay reports Q1 earnings early Thursday, with analysts expecting a 19% gain to 75 cents a share. Revenue should swell 78% to $838 million.
Pegasystems
Pegasystems reports Thursday. The business process software firm’s EPS is expected to sink 23% to 30 cents with revenue up 2% to $227 million. The stock is closing on resistance around 64 in a consolidation going back 11 months.
LGI Homes
LGI Homes, one of the top-rated builders, has a cup-with-handle base with a 75.62 buy point. The stock closed Friday at 73.23.
LGI Homes on Tuesday should deliver a 66% revenue spike to $271 million as EPS leaps 48% to 77 cents.
