Despite the tech-driven sell-off on Thursday, top stocks continue to mostly hold above recent buy points. These three stocks are in or near buy zones in the stock market today ahead of the Fed’s interest-rate decision and the Trump-Kim summit at 9 a.m. ET Monday. Meanwhile, Twitter (TWTR) stock has made strong gains since a cup-with-handle breakout on May 21 and is in the potential profit-taking range. The stock was featured in the May 21 Stocks Near A Buy Zone column.
Spotify (SPOT) is trading just under an initial base’s 171.33 buy point after a breakout Friday. Shares fell slightly midday Monday.
Shares dropped almost 6% on May 3 after the company’s first quarterly earnings release disappointed investors. But after an eight-day win streak, the stock is right at its post-IPO highs. The company went public April 3 using a direct listing approach.
After losing $8.11 per share last year, analysts expect the streaming music leader’s annual loss to decline substantially over the coming years. Meanwhile, revenue continues to grow sharply, coming in at 45% in the most recent quarter vs. the year-ago period.
Big Cap 20 member PayPal (PYPL) is trading right at an 84.09 double-bottom entry after a breakout June 4.
Bullishly, the stock’s relative strength line hit a new high amid the stock’s breakout. The RS line should hit a new high on the breakout day or shortly thereafter.
According to the IBD Stock Checkup, PayPal has a B Accumulation/Distribution Rating. The rating measures institutional buying and selling over the last quarter. Meanwhile, its IBD Composite Rating is 97 out of a highest-possible 99.
Molina Healthcare (MOH) is rapidly approaching a cup with handle’s 91.25 buy point Monday, according to MarketSmith chart analysis. Shares surged more than 3% in midday trade.
The managed care company provides health insurance to individuals through government programs like Medicaid and Medicare.
The RS line hasn’t reached a new high yet, but it is sharply ascending over the stock’s current five-day win streak.
While year-over-year earnings grew 16% in the latest quarter, revenue growth fell 5%.
Twitter Stock Shows Market Leadership
Social media platform and IBD 50 stock Twitter has emerged as a market leader since a May 21 breakout above a 33.88 cup-with-handle entry. Twitter stock is more than 20% above the buy point in a short period time, indicating strong institutional participation.
Some investors could decide to lock in a gain at the 20%-25% profit-taking level. Other investors with high levels of conviction in the stock could decide to hold for an outsize profit.
Tip: Before making any investment decisions, be sure to check current market conditions, and use IBD Stock Checkup to see if your stock gets passing ratings for the most important fundamental and technical criteria. To get ongoing chart analysis, and alerts to buy and sell signals, check out Leaderboard and SwingTrader.
