Spotify stock broke out on Friday following a major court ruling against Apple. Meanwhile, Carpenter Technology, Stride and Penumbra are all trading in buy zones after earnings. ExlService is closing in on an early entry.
Among this week's list of stocks to watch, Penumbra and Carpenter rank on the IBD Leaderboard list. Stride is a member of the IBD 50 list. Spotify was added to SwingTrader on Friday.
All five stocks have already reported earnings recently, removing a big risk.
Meanwhile, the major stock indexes pushed higher on Friday following reports that China is considering a fentanyl offer to the U.S. to start trade talks. The Dow Jones Industrial Average has just retaken its 50-day moving average. The S&P 500 and Nasdaq are above their 50-day lines and eyeing their 200-day averages.
In the current market, IBD recommends 40% to 60% stock exposure.
Spotify Stock
Spotify stock on Friday rallied 6.9% to clear a 621.20 buy point for a double-bottom base. The move comes after a U.S. federal judge on Wednesday ordered Apple to stop charging commission from developers for purchases made through iPhone apps.
Spotify on Friday released a new mobile update in response to the ruling. Now, Spotify customers can manage their subscription plans across a wider range of payment options outside of Apple's system. The update also provides greater pricing transparency in the mobile app, the company wrote in a blog post.
Spotify missed earnings and revenue estimates for Q1 results on Tuesday. Still, the music streaming platform added 5 million premium subscribers during the quarter, beating forecasts by 3 million.
Shares tumbled Tuesday on the results, but rallied to close above the 50-day line.
Spotify's current buy zone, which stretches 5% beyond the buy point, extends to 652.26.
SwingTrader added Spotify stock as a half position on Friday. SwingTrader has a stop loss set at 89.97.
SPOT stock has a 21-Day average true range (ATR) of 6.54%.
The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs. There are exceptions, but given current market conditions, IBD generally suggests investors keep most of their portfolio focused on stocks with ATRs at or below 6%.
Spotify stock has soared 44% in 2025.
Carpenter Technology Stock
Carpenter Technology is now out of the buy zone, though it does have an alternate entry.
CRS stock moved back above a 198.48 double-bottom buy point on Thursday, then kept running Friday for a 7% weekly gain to 213.01. Investors could use the consolidation high of 213.66 as an alternate entry.
Shares initially broke out following Carpenter's April 24 earnings report.
The specialized metals maker reported a 58% jump in earnings to beat forecasts. Sales rose 6% to $727 million, slightly missing expectations.
Still, CEO Tony Thene said he expects "limited impact" from tariffs. Carpenter's largest raw material input is nickel, which is mainly sourced from Canada. So far Canadian nickel has been exempted from the tariffs, according to the conference call. The company also has mechanisms in place to pass onto customers. And the specialized nature of Carpenter's products mean there are few alternatives.
Carpenter stock has a 21-day ATR of 7.34%.
In addition to the Leaderboard list, Carpenter was Thursday's IBD Stock Of The Day.
Stride Stock
Stride broke out this week following its Tuesday earnings report.
LRN stock on Thursday surged above a 145 entry for a 10-week consolidation. Shares advanced another 5% on Friday to clear the buy zone.
Investors could wait to see if Stride pulls back or forges some sort of shelf above the base.
Stride reported earnings of $2.31 per share adjusted to beat the FactSet consensus for $2.21 per share. Revenue increased nearly 18% to $613.38 million, also ahead of views, with growth accelerating for a third straight quarter.
Average enrollments for the quarter jumped 21.1% to 240,200 students.
The online education company now expects 2025 revenue to rise 17% for the year at the midpoint of its guidance range of $2.37 billion-$2.385 billion.
In terms of long-term targets, Stride expects to reach revenue of $2.7 billion to $3.3 billion for 2028, representing a compound annual growth rate of 10% at the midpoint. Earnings for 2028 are expected to range from $6.15 to $8.35 per share, representing a CAGR of 20% at the midpoint.
Penumbra Stock
Medical products provider Penumbra broke out on April 24 following its Q1 results. Shares since then have traded tightly within range of a 288.57 double-bottom buy point.
Penumbra earnings more than doubled to 83 cents per share and easily beat views. Sales increased 16%, also ahead of views.
Meanwhile, the company shouldn't see too much of a hit from tariffs.
CEO Adam Elsesser during the earnings call noted Penumbra manufactures 100% of its products in the U.S., while three-quarters of its products and components are sourced domestically. The U.S. also accounts for 79.2% of total sales.
Penumbra is currently working to optimize its supply chain and onshore materials not sourced in the U.S.
The company maintained its 2025 revenue forecast of $1.34 billion to $1.36 billion. FactSet analysts expect $1.355 billion.
PEN stock rallied nearly 25% so far this year.
Penumbra leads the Medical-Products Group according to the IBD Stock Checkup. PEN stock has a perfect 99 Composite Rating. The Composite Rating combines various technical indicators into one easy-to-read score.
ExlService Stock
ExlService is closing in on an early entry opportunity after its Tuesday earnings.
EXLS stock is consolidating with an official buy point at 52.43. Investors could use this week's high of 48.79 as an early entry opportunity. The stock could be starting to forge a proper handle
Shares on Wednesday jumped above their 50-day moving average following earnings. The stock is up almost 6% in 2025.
The management consultant firm reported a 27% increase in adjusted earnings on about 15% revenue growth, both beating FactSet estimates.
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