S&P 500 components Tesla, Nvidia, Bank Of America and Howmet Aerospace are in focus for this week's stock market. Nuclear-play Oklo is also a stock to watch.
With the stock market at record highs, a number of leaders are flashing buy signals or setting up. Nvidia has a new valid base, while Tesla stock has raced through a buy zone. Nuclear startup Oklo is a highly speculative stocks that has moved past buy signals. Meanwhile, Howmet Aerospace has moved above the 50-day line, offering an early entry within a flat base and Bank of America is forging a shelf within a buy zone.
The stock market rally appears to be starting a new leg higher after several weeks of sideways action. AI-related stocks continue to lead the market but the advance is broad, if uneven.
Investors should be looking to be heavily invested and adding exposure or swapping in new buys for underperformers.
With that in mind, here are the five stocks to watch this week.
Investors can also keep tabs on the Leaderboard, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
S&P 500: Tesla Stock Performance
Tesla stock vaulted 12.85% on the week, surging 7.4% to 395.64 during Friday's stock market. TSLA shares advanced 6% to 368.81 on Thursday moving above a traditional consolidation buy point of 367.71, according to MarketSurge charts.
The advance on Friday means TSLA is extended.
Investors could have been buying after Tesla stock cleared resistance at the 357-358 level. Tesla stock was also added to IBD SwingTrader on Thursday with a price of entry of 358.38.
The EV giant has flashed aggressive entries multiple times in the current base, only to quickly fall back in what had been a sideways market.
However, since the end of July Tesla stock has advanced about 22%. Shares have gained more than 13% in September.
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The relative strength line for Tesla stock is moving toward consolidation highs, though well off the 52-week peak.
On Monday, Tesla unveiled its Megablock product, the latest addition to its industrial energy storage line. Meanwhile, CEO Elon Musk continues to tout the potential market for Tesla's Optimus humanoid robot and the company's robotaxi ride-hailing ambitions.
Tesla reports third-quarter global vehicle deliveries in early October and Q3 earnings on Oct. 21.
Tesla deliveries should be strong in Q3 as the U.S. tax credit expires on Sept. 30. After that, deliveries are likely to fall significantly in the U.S.
The S&P 500 stock has a 65 Composite Rating out of a best-possible 99. Tesla stock has an 84 Relative Strength Rating and a 53 EPS Rating.
Oklo Stock Performance
Nuclear stock Oklo soared 18.5% to 82.71 during the week. Oklo cleared a trendline entry and short-term high of 79.92 on Thursday, but seems extended from at least the former.
It's also 17.8% above its 50-day moving average.
Oklo could have a new base in another week with an 85.35 buy point, based off the Aug. 6 all-time high.
Oklo is backed by OpenAI CEO Sam Altman.
In late August, UBS initiated coverage of Oklo with analysts writing they were "cautiously optimistic" on the potential for a broader U.S. nuclear infrastructure buildout but await further commercialization progress. The analysts stressed there are risks in nuclear project development, while the stock's valuation is elevated relative to the broader nuclear space.
Bank of America analysts also initiated coverage last month. Analyst Dimple Gosai handed Oklo a bullish buy rating with a 92 stock price target, suggesting the stock has around 16% upside.
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Oklo is focused on the emerging small modular reactor, or SMR, technology. The startup is looking to bring its first commercial SMR online in late 2027 or early 2028. No operating SMRs now exist, but a number of companies are developing the technology. SMRs aim to provide power at the company level, drastically reducing the time and cost compared to permitting, constructing and operating full-scale nuclear facilities.
There is risk involved with Oklo, a development-stage company. On Aug. 11, Oklo reported a Q2 loss of $28 million, or 18 cents per share, with no sales. The company ended the second quarter with cash and equivalents of $226.8 million, up 133% from year-end 2024.
Oklo stock has revved 273% higher in the 2025 stock market.
The nuclear stock has a 92 Composite Rating, a perfect 99 Relative Strength Rating and a 46 EPS Rating.
S&P 500: Bank Of America
Bank of America climbed 1.6% to 50.58 during the week. The banking stock is forging a shelf within a buy zone from a flat base buy point of 49.30, according to IBD MarketSurge.
Bank and finance stocks have been generally rallying since Federal Reserve Chairman Jerome Powell hinted that a rate cut in September is possible. The Federal Reserve meeting takes center stage this coming week, with policymakers expected to cut rates, but the size and pace of this new round is still unclear.
The S&P 500 stock's relative strength line is headed higher as well.
Bank of America's second-quarter earnings grew 7% to 89 cents per share while sales increased 4% to $26.5 billion. For the full year, analysts polled by FactSet see earnings growth of 14% or $3.67 per share. In 2026, a 16% increase in profits and earnings of $4.27 per share are expected.
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Warren Buffett revealed in August that he sold Bank of America stock in the second quarter. Buffett shed about 4% of his remaining Bank of America stake, which stood at 605.27 million shares on June 30, down from 631.57 million as of March 31.
The S&P 500 stock has an 84 Composite Rating, a 78 Relative Strength Rating and a 75 EPS Rating.
Nvidia Stock Performance
The top AI stock advanced 6.5% to 177.82 during the week's stock market action. Nvidia stock has a new flat base with a 184.48 buy point. Investors could use Thursday's high of 180.28 as an early entry, according to MarketSurge chart analysis.
Since bottoming at 86.62 on April 7, Nvidia stock has soared 105%.
Nvidia stock rose past a key level on Wednesday, aided by a robust outlook for artificial intelligence revenue from Oracle. Oracle late Tuesday missed quarterly earnings and sales estimates but reported a 359% surge in its remaining performance obligation of $455 billion.
In late August, Nvidia posted second-quarter financial results that topped Wall Street's expectations, but it forecast just a slightly higher current-quarter revenue outlook.
On Thursday, D.A. Davidson analyst Gil Luria upgraded NVDA from neutral to buy with a price target of $210, up from $195. Luria was among the few analysts who had been skeptical of Nvidia's growth outlook.
The analyst sees a growth trajectory stretching at least into the next year due to AI compute demand.
Meanwhile, Nvidia rival Broadcom late last week said it received a massive order from a new client, amounting to more than $10 billion.
On Monday, Citi analyst Atif Malik cut the price target for Nvidia stock to 200 from 210 while maintaining a buy rating. Malik said competition from Broadcom could result in a $12 billion sales loss for Nvidia.
Nvidia stock has a near-perfect 98 Composite Rating, an 88 Relative Strength Rating and a perfect 99 EPS Rating.
S&P 500: Howmet Aerospace
Howmet Aerospace climbed 4.25% to 185.77 on the week, reclaiming its 50-day line, and flashing an early entry within a shallow cup base with a traditional 193.26 buy point.
The S&P 500 aerospace play booked consecutive monthly declines in July and August but is looking to notch a gain in September. So far this month, Howmet Aerospace is up more than 6%.
Tensions in the Middle East and elsewhere continue to drive demand for defense stocks. HWM has advanced 69% in this year's stock market.
The company supplies aircraft parts, including engine turbine blades, for both new commercial jets and those already in service, as well as for military aircraft. Howmet Aerospace reported better-than-expected second-quarter earnings and revenue on July 31. However, third-quarter profit guidance came in around 89 cents to 91 cents per share, in line with analyst projections. The S&P 500 stock fell 6.4% on the report before bottoming at 169.45 on Aug. 20. Howmet has moved 9% higher since then.
Meanwhile, Kratos Defense & Security Solutions this week rose 4.8% to 67.88, moving further off the 21-day line and breaking the downtrend of a short consolidation. It bounced off the 10-week line to start the week. All of that offers an opportunity for the drone and defense play.
The S&P 500 stock has a strong 97 Composite Rating, a 91 Relative Strength Rating and a 98 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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