Veeva Systems, Urban Outfitters, Millrose Properties, Micron Technology and Trane Technologies are stocks near buy points.
The S&P 500 and Nasdaq composite made record highs Thursday, although both finished with slight weekly losses. More headline flow on tariffs tested the stock market's resilience. Investors now gear up for the first week of second-quarter earnings reports.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with a 21-day average true range of up to 8%, though they should be wary of being too concentrated in high-octane names.
The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.
Veeva Leads Medical Software
Veeva Systems fell 3% this week, yet it remained above its rising 10-week moving average and is forming a flat base with a 291.69 buy point. Shares gapped up May 29 after a positive earnings report and held tightly for several weeks.
The cloud computing company, which develops software for the life sciences, blew past fiscal first-quarter expectations at that time and gave a bullish full-year outlook. The company's forecast exceeded analysts' estimates. The company has said it's performed well despite disruptions in health care following Covid-19.
Today, Veeva is the leader in the medical software industry group, with an IBD Composite Rating of 99. Its EPS Rating (98) is one of the industry's best, after the company posted earnings gains of 34%, 31%, 26% and 31% the past four quarters. Sales rose 15%, 13%, 14% and 17% over the same periods.
Analysts expect current-quarter earnings of $1.90 a share, an increase of 17%, according to FactSet. Sales are estimated to rise 14% to $768 million.
About 51% of revenue originates in the U.S. with the rest coming from Canada, Germany, France and other European countries, according to FactSet.
Veeva stock has a 21-day ATR of 2.24%.
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Urban Outfitters Has New Buy Point
Urban Outfitters is forming a cup-with-handle base with a 74.45 buy point. The stock rallied 23% after a strong earnings report on May 21 and has been basing for seven weeks. The relative strength line is lagging in the past few weeks, but that's after a strong advance.
Urban Outfitters has a lot going for itself, including the No. 1 ranking in the apparel retail industry group, according to IBD Stock Checkup. It also has the highest EPS Rating of 30 stocks in the group.
The company's most recent earnings report defied expectations of softer consumer trends. The retailer described customers as "resilient" and eager for spring fashion.
April-ended quarter sales rose 10.7% to $1.33 billion while earnings per share jumped 78.5% to $1.16. It was the second straight quarter of strong revenue gains and the third consecutive quarter of accelerating EPS growth.
Analysts expect current-quarter earnings to climb 18% to $1.47 a share, with sales up 9% to $1.477 billion, per FactSet.
Urban Outfitters has more than 700 stores globally under the Anthropologie, Free People, FP Movement, Urban Outfitters, Nuuly and other brands.
The stock has an ATR of 3.33%.
Housing IPO Breaks Out
Millrose Properties is in a buy zone after breaking out of a base-on-base pattern Wednesday at a 28.99 buy point. The buy zone goes to 30.44.
Miami-based Millrose is one of the best-performing stocks this year in IBD's homebuilding industry group, up more than 36% since its first closing price on Feb. 5. Yet, the company doesn't build any homes.
It was spun off from homebuilder Lennar and specializes in the acquisition, preparation and sale of land to builders, who in turn do the work of building homes.
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In March, Millrose reported "strong progress" on making deals outside of Lennar, closing about $250 million in transactions since the spinoff. Millrose says it expects at least $1 billion in such deals for the full year.
Management forecast earnings of 65-68 cents a share for the quarter ended June 30. Millrose will announce second-quarter results before the market opens on July 31.
Millrose has an IBD Composite Rating of 53 out of 99. The low score is mainly due to losses by its predecessor company.
The stock has an ATR of 2.65%.
Micron Stock Pauses After Huge Recovery
Micron Technology is forming a handle in a deep base that has been forming for more than a year. The buy point is 129.85. The stock fell as much as 61% from its peak in June 2024 to the low in April, a period that included the tariff-related bear market. Since then, MU stock has more than doubled, peaking just after fiscal Q2 earnings in late June. A longer, slightly deeper handle would be constructive.
The company, best known for its memory chips, leads the data storage industry group with a perfect 99 Composite Rating. Micron owes much of that score to a return to profitability that saw EPS surge 481% and 293% the past two quarters, per FactSet.
Analysts expect August-quarter earnings to climb 122% to $2.22 a share on sales of $10.714 billion, up 38%.
This week, Goldman Sachs initiated coverage of Micron with a neutral rating and a 130 price target, TheFly.com reported. That's 4.5% below the current quote of around 124.
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Goldman Sachs gave a mixed outlook on the chip capital equipment industry, creating relatively stable revenue dynamics. Analysts believe upside remains in the hard-disk-drive cycle with a recovery in NAND, a type of flash memory that Micron makes, into 2026.
On Wednesday, Deutsche Bank initiated coverage of Micron with a buy rating and 150 price target. High bandwidth memory is an "underrated driver" of generative artificial intelligence processor performance improvements, Deutsche Bank noted. That growth should drive DRAM revenue growth with profitability above historical levels, per TheFly.com.
The Boise, Idaho-based company on June 25 beat quarterly estimates and raised guidance. Its data center revenue more than doubled year over year. Micron's high-bandwidth memory (HBM) is a crucial component for AI graphics-processing technology.
Micron stock has an ATR of 3.18%.
Industrial Leader Another Stock To Watch
Trane Technologies is trading within a buy zone from a 422 buy point. The stock first topped that entry May 13. Shares are in a buy range to 443.31, and support at the 10-week moving average also makes the stock actionable now. TT stock set a record close on Friday.
Investors can also opt to wait for shares to clear their current tight range. That would be a secondary entry around 436.
Ireland-based Trane is another play on AI, one of its strongest markets as a provider of cooling equipment for data centers. But the company never even mentioned data centers in its latest earnings report, and it stresses that other markets such as education and health care are also growing well.
The global provider of heating, ventilation and air conditioning systems underscores its efforts to reduce carbon emissions with energy-efficient products. It was named in Time Magazine's Most Sustainable Companies of 2025.
On Wednesday, Barclays raised the firm's price target to 480 from 476 and kept an overweight rating. Analysts said most companies in the industry are positioned to beat estimates and raise guidance despite tepid consumer demand, TheFly.com reported. But Barclays is cautious on the group's stock given the sector's rally.
Of the stocks to watch this week, Trane is closest to its earnings report. Second-quarter results are due July 30 before the market opens. Analysts expect earnings of $3.79 a share for an increase of 15%. Sales are seen rising 9% to $5.768 billion, according to FactSet.
Trane stock has a Composite Rating of 92 and an ATR of 1.77%.
