Meta stock leads this week's list of stocks to watch near buy points amid earnings results. BrightSpring Health, BJ's Wholesale, On Holding and Broadcom are also closing in on entries. The recent market pullback has allowed most of the stocks to form handles. BJ's is the exception, finishing off a flat base in recent days.
Broadcom is set to report Q2 earnings in early June.
Meta, BrightSpring and Broadcom were all featured as the IBD Stock Of The Day this week.
Meta Stock
Meta was the IBD Stock Of The Day for Wednesday.
Shares of the Facebook parent have rallied more than 14% this month following its better-than-expected Q1 earnings report at the beginning of May. President Trump's May 12 announcement to slash tariffs on Chinese goods to 30% from 145% also provided a boost. China's Temu and Shein are big advertisers on Facebook and Instagram.
Temu-parent PDD Holdings reports earnings on Tuesday.
Meta stock is trading in cup-with-handle pattern with a 662.67 buy point, with the entry matching its high from last week.
A move above Wednesday's intraday high of 646.61 could offer investors an early entry.
However, the Magnificent Seven member has hit a bit of a roadblock with its latest AI launch.
The Wall Street Journal reported on May 15 that Meta had delayed the rollout of its "Behemoth" Llama AI model. The report said Meta was struggling to improve the model's capabilities from previous versions. Shares fell 2.5% that day.
CEO Mark Zuckerberg has told investors that Meta expects roughly $68 billion in capital spending this year, largely focused on developing AI-related infrastructure. With that much money on the line, Meta's AI progress is closely watched by investors.
Meta stock is up 7% so far this year.
BrightSpring Health Stock
BrightSpring Health Services has been on a tear since its January 2024 launch. The Louisville, Ky.-based provider of pharmacy services, at-home and specialized care now leads its industry group just 16 months after going public.
The company launched its IPO at $13 per share, lower than the offering range of $15 to $18. The offering valued BrightSpring at $2.2 billion, but the health care provider's marketcap has since ballooned to over $4 billion according to MarketSurge data.
BrightSpring on May 2 handily beat Q1 expectations with earnings of 19 cents per share adjusted on nearly 12% revenue growth to $2.88 billion.
FactSet analysts expected earnings of 9 cents per share on $2.71 billion in sales.
BTSG stock has retreated over the past week to form a handle for its cup base. The handle has a 24.80 buy point. The cup base had a 24.82 entry, matching the stock's record high from Jan. 30.
BrightSpring Health has rallied more than 36% in 2025.
BTSG stock was the IBD Stock Of The Day for Thursday.
BJ's Wholesale Stock
BJ's Wholesale Club is trading in a flat base following the retailer's mixed Q1 report early Thursday.
The pattern has a 121.10 buy point, from its April 15 record high. Investors could use 120.33 as a slightly early entry.
Shares held support at their 50-day line on Friday, closing fractionally higher for the week.
BJ's Wholesale Club reported a 34% increase in earnings to $1.14 per share adjusted, beating analyst estimates for 92 cents per share. Revenue rose 4.8% to $5.15 billion, just short of expectations for $5.19 billion.
Total comparable sales excluding gasoline climbed 3.9% and outpaced FactSet views for 3.6% growth.
BJ's Wholesale also maintained its 2025 outlook for adjusted EPS of $4.10-$4.30, with comparable sales excluding gas up 2%-3.5% year-over-year.
The midpoint of the forecast is below FactSet earnings views for $4.24 per share for the year. Analysts expect 3.1% same-store sales growth for the year.
Still, BJ stock is up over 30% in 2025.
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On Holding Stock
On Holding is a member of the IBD 50.
The Swiss shoemaker on May 13 reported earnings of 25 cents per share adjusted, down from 36 cents last year. Revenue increased to $861 million from $561 million last year.
FactSet expected earnings of 24 cents per share on $817 million in revenue.
Footwear sales jumped about 51% to $807 million, outpacing the $762 million expected by analysts.
On lifted its full-year net sales outlook to 28% growth from its Q4 forecast for a 27% increase.
ONON stock has formed a handle for its cup base with a 60.42 buy point.
The entry is modestly below On's Jan. 30 record high of 64.05.
On Holding has rallied 69 from its April 4 low with a year-to-date gain of 6.7%.
Meanwhile, rival Deckers tumbled about 20% on Friday following its Q4 report on Thursday. Deckers beat views, but guided lower as it fears price hikes will spur "demand erosion."
On Holding initially tumbled Friday on the Deckers profit warning and Trump tariff headlines, but slashed losses in a bullish shakeout.
Broadcom Stock
Broadcom is a member of the Leaderboard list, Tech Leaders list and the Big Cap 20 list. AVGO shares also served as the IBD Stock Of The Day for Monday.
The fabless chipmaker and infrastructure software provider formed a handle with a 235.28 buy point within a 22-week consolidation. Shares began consolidating in December after hitting an all-time peak of 251.88, which could also serve as a later entry.
AVGO stock is down 1% in 2025 but has rebounded nearly 66% from its April 7 low of 138.10.
Broadcom is set to report Q2 results on June 5. FactSet expects a 26% increase in earnings to $1.57 per share on about 20% revenue growth to $14.96 billion.
Industry peer Nvidia reports its Q1 earnings on Wednesday, which could influence Broadcom stock.
Analysts forecast the chipmaker and AI play will report a 20% increase in earnings to 73 cents per share. Wall Street forecasts anticipate a 66% spike in sales to $43.29 billion.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
