Your stocks to watch for the week ahead include Apple stock, software stocks like Twilio (TWLO), along with Floor & Decor (FND), solar stock SolarEdge (SEDG) and 10x Genomics (TXG).
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All of these stocks have found support recently at their 50-day lines. When a stock rises off its 50-day line, that’s often a sign of investor support. Often a rebound off the 50-day or 10-week moving average can offer a buying opportunity.
Apple (AAPL) and Floor & Decor stock are in range from early entries, while working on official buy points. Twilio stock, SolarEdge and 10X Genomics also are near buy points.
Apple Stock
Apple fell 0.6% to 122.25 in Friday’s stock market trading, but rallied 4.65% for the week. Shares cleared a short downward-sloping trend line last week as it rebounded from its 50-day line. Apple stock also moved above a 122.09 early entry. Another early entry is 125.49. The official buy point for AAPL stock is 138.08.
Since a 4-for-1 split in early April, Apple stock has consolidated. The relative strength line for AAPL stock has been lackluster for several months. But that follows a run of outperformance for the iPhone maker since January 2019. The RS line, the blue line in the charts provided, tracks a stock’s performance vs. the S&P 500 index.
The release of the new 5G iPhone is boosting optimism for revived handset sales over the next month, along with a post-coronavirus economic recovery. iPhone sales have slowed, as people hold onto their cellphones longer.
Apple stock has a strong 92 Composite Rating and an 81 EPS Rating. IBD encourages investors to focus on stocks with Composite Ratings in the 90s.
Apple stock is on IBD Leaderboard.
Floor & Decor Stock
Floor & Decor stock dipped 0.4% to 83.50 on Friday, but rose 2.25% for the week. The flooring and tile retailer has an 86.06 handle buy point.
Aggressive investors could have bought FND stock after it broke the short trend line in the handle, continuing a bounce from the 50-day line.
Investors also could have bought the stock on Thursday or Friday, once it broke the downward pattern formed by the handle. Demand for homes — as some people leave crowded cities due to the coronavirus pandemic and try to take advantage of low mortgage rates — has led to demand for things like flooring.
CEO Thomas Taylor said during the Floor & Decor earnings call in October that he expected the retailer to continue to benefit from low mortgage rates.
“Carpet continues to seed market share to hard-surface flooring,” he said.
Floor & Decor stock has a 97 Composite Rating. Its EPS Rating is 90.
FND stock is on the IBD 50.
Twilio Stock
Twilio stock dipped 0.1% to 319.49 on Friday and edged up 0.1% for the week. Shares are in a cup base with a 341.80 buy point.
Twilio stock offered an early entry in late November when it rebounded from its 50-day/10-week line and cleared a downtrend line similar to Apple stock. It’s continued to find support at the 10-week line.
The company’s software helps app developers embed voice, text and video, and facilitates communication between cloud-based platforms. Demand for that software has risen due to the pandemic, which has reduced face-to-face contact.
TWLO stock has a 93 Composite Rating and a 71 EPS Rating.
SolarEdge Stock
SolarEdge stock dipped 0.1% to 271.97 on Friday, retreating 5.6% for the week. The stock has a 298.91 buy point from a new handle on a cup base. The base is 40% deep, which is fairly large.
Shares of the Israel-based company, whose products convert a solar panel’s direct current into alternating current, crashed 23% on Nov. 3, after revenue and outlook came in below expectations. But SEDG stock quickly rebounded to end the week down less than 8%, almost back above its 10-week line. Soon SolarEdge stock retook its 50-day/10-week lines, though it tested its 10-week line once again last week.
Analysts have said that President-elect Joe Biden’s potential push toward renewable energy, once in the White House, could lift solar stocks. SolarEdge stock has a 95 Composite Rating and an 87 EPS Rating.
10x Genomics Stock
10x Genomics stock, a genetics-testing company, rose 2.6% to 149.04 on Friday, rebounding from the 10-week line once again and paring its weekly loss to 1.1%. After Monday, TXG stock will likely have a handle with a 157.58 buy point. On a weekly chart, the handle is already there.
10x Genomics stock cleared a 150.23 early entry on Nov. 27, but by Wednesday had fallen below that level.
The company’s technology helps academic researchers and pharmaceutical companies research treatments into Alzheimer’s, cystic fibrosis and a range of cancers.
TXG stock has a 59 Composite Rating. But its EPS Rating is 1, the worst possible.
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