Tuesday's stock market pullback is offering investors second chances for a few stocks after the S&P 500 posted its 20th record close for the year last week.
Investor's Business Daily's global leaders screen shows three stocks that have retreated and are trading in 5% buy zones or just below proper buy points. The first, Atour Lifestyle Holdings is back in a buy zone above an entry at 37.46.
Meanwhile, Sabesp may also offer a second chance as shares recover from early losses and edge closer to a buy point of 22.18. And StoneCo is also within buying range from an entry at 16.
Atour Lifestyle is a hotel operator in China. The stock had gained 250% as of Friday's close since shares started trading at an initial offering price of 11 in November 2022.
After forming an early-stage base-on-base formation, shares broke out after second-quarter results on Aug. 26. The stock hit its all-time high of 39.84 on Friday.
Earnings grew 30% to 43 cents per share while sales increased 39% to $344.6 million.
The company boasts steady earnings growth, ranging between 30% and 149% over the past eight quarters. Sales increases also have been steady, ranging between 29% and 134% during the same period.
Atour Lifestyle leads the leisure and lodging group, according to IBD Stock Checkup. Atour also leads the leisure sector, one of 33 sectors in the IBD database.
Shares have outperformed 93% of other stocks in the IBD database.
Mutual funds own 55% of outstanding shares. Its Accumulation/Distribution Rating of B+ also shows that funds have been net buyers of the stock over the most recent 13 weeks.
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Brazil-based water resource management stock Sabesp gapped up and broke out of a flat base after reporting earnings for its June-ended quarter on Aug. 12. Shares also hit their all-time high of 22.88 as they rallied on earnings. The stock was just below its buy point of 22.18 on Tuesday.
Earnings grew 81% from the prior year and accelerated from the prior quarter to 57 cents per share. Revenue growth also picked up and rose 37% to $1.6 billion.
Sabesp holds an ideal Earnings Per Share Rating of 99 while its Composite Rating sits at 91. Shares have outperformed 87% of other stocks in the IBD database over the past 52 weeks.
Finally, Latin American fintech stock StoneCo is also in a buy zone from a buy point of 16. Growth accelerated in its June-ended quarter with earnings rising 46% to 41 cents per share. Sales grew 24% to $644.4 million.
The stock has done better than 92% of other stocks in the IBD database over 52 weeks. Funds have been loading up in recent weeks, giving the stock an Accumulation/Distribution Rating of B.
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