S&P 500 stocks Advanced Micro Devices and Arista Networks along with Roger Federer-backed On Holding, Cloudflare and Shift4 Payments are in focus this week.
With the market in a confirmed uptrend and S&P 500 hitting a fresh 14-month high, this past week was a good time for investors to add exposure.
However, with the Nasdaq looking extended, the risk of another market pullback has returned. Several of the stocks on this list fell back Friday as major indexes pared gains.
Meanwhile, the market is sure to get shaken up this coming week as earnings season picks up steam, with Tesla and Netflix on tap.
Against this backdrop, investors should keep tabs on these five stocks that are trading around buy points. Out of these five, ONON stock is on IBD Leaderboard. On Holding and ANET are on SwingTrader and the IBD 50. Cloudflare was Friday's IBD Stock Of The Day.
S&P 500 Stocks: Advanced Micro Devices Stock
AMD rose as high as 122.12 during Friday's market trade, bouncing from its 21-day and 10-week lines, clearing steep trendline and the July 5 high of 117.66. But shares essentially erased gains, closing up 2 cents to 115.94. For the week, AMD stock did rise 2.45%, in the middle of its range.
Investors could still use 117.66 as a buy point, but Friday's high may ultimately be the better bet.
The S&P 500 chip giant is competing with Nvidia as the AI chip leader. Nvidia stock and AMD have tended to trade off chip leadership in recent years, and that could happen again. However, currently Nvidia is the leader with AMD lagging somewhat.
Last month, the chipmaker unveiled its latest semiconductor and data center products optimized for artificial intelligence. AMD's AI moves are positioning the chipmaker to take advantage of what will be a $150 billion total addressable market opportunity in the data center market by 2027.
The market will be about $30 billion in 2023, according to the company.
On Wednesday, TD Cowen analyst Matthew Ramsay raised the firm's AMD price target on 135 from 115. Ramsay kept an outperform rating on the S&P 500 component. Ramsay wrote he believes investors are prepared for mixed Q2 and Q3 reports as the macro economic environment remains challenging.
Advanced Micro Devices stock has a 92 Composite Rating out of 99. The S&P 500 stock has a 95 Relative Strength Rating. The EPS Rating is for the stock 72 out of 99.
Cloudflare Stock
NET fell 1.6% to 66.54 on Friday, reversing lower near a buy point. Cloudflare has formed a flat base with a 72 buy point, according to MarketSmith analysis. The current flat base is directly next to the stock's previous valid base.
NET stock briefly cleared a trendline and moved above Wednesday's high of 69.61 intraday.
Started in 2009, San Francisco-based Cloudflare speeds up and provides security for web applications routed through its global network.
The cybersecurity play took a hit Wednesday as Microsoft expanded its product offerings, putting pressure on Cloudflare and other cybersecurity stocks. Cloudflare stock was Friday's IBD Stock Of The Day.
But for the week, NET stock jumped 6.7%, rebounding from the 10-week line.
On April 28, Cloudflare plunged 21% after the company reported first-quarter earnings that topped estimates while revenue roughly met expectations. But the company also gave a weak June-quarter and full-year 2023 revenue outlook. Shares have been on the rebound since early May.
Cloudflare reported earning 8 cents a share in Q1, up from a 1-cent profit a year earlier. Revenue climbed 37% to $290.2 million.
NET has a perfect 99 Composite Rating. Cloudflare stock has a 89 Relative Strength Rating. The EPS Rating for NET is 80 out of 99.
Shift4 Payments Stock
FOUR fell 3.2% to 67.13 on Friday, back below a key resistance level around 69. Shares rose in higher volume in the prior two sessions, closing above the 69 area on Thursday, but FOUR stock ended on both days. On a positive note, Friday's slide came on light trade, while FOUR stock bounced slightly from the 21-day line.
For the week, shares climbed 1.5%, but in the lower third of its range.
At this point, investors may want to see if Shift4 Payments stock forms a handle based on Thursday's high of 71.03. The current official buy point is 86.40.
Shift4 Payments is an independent provider of payment acceptance and payment processing technology solutions in the U.S. It's payment processing includes credit, debit, contactless card, and QR pay among other alternative payment methods.
On Thursday, Goldman Sachs lowered its price target on Shift4 Payments sock to 88 from 90. Analyst Will Nance maintained a buy rating on the shares with expectations of a mixed outlook for consumer spending and payments companies for the remainder of the year.
In May, the company reported better-than-expected Q1 financials. Shift4 Payments saw EPS skyrocket 240% to 51 cents. Revenue grew 34% to $200 million.
The stock has a 93 Composite Rating. FOUR has a 91 Relative Strength Rating. The EPS Rating for FOUR is 82.
On Holding Stock
ONON slipped 1.2% to 33.14 Friday, just below a valid buy point. But shares jumped 5.4% for the week.
On Thursday, ONON advanced above a trendline entry but failed to close above a 33.67 cup-with-handle buy point, according to MarketSmith.
ONON stock has regained its footing after selling off amid concern about excess inventory following its May 16 first-quarter earnings report.
On Wednesday, Piper Sandler analyst Abbie Zvejnieks touted ONON stock as a "top growth idea" and bumped up the firm's price target to 39, from 38.
The Swiss athletic footwear and apparel maker, behind the popular On running shoe brand, went public at 24 per share in September 2021 and is backed by tennis champion Roger Federer.
The company outpaced Q1 estimates in May. Profits tripled to 0.15 per share CHF (Swiss francs) adjusted on a 78.3% revenue increase to 420.2 million CHF. In U.S. dollars, earnings spiked to 17 cents on $470.6 million in sales.
The company raised its net sales outlook to at least 1.74 billion CHF, up slightly from its March forecast of 1.7 billion CHF. In dollars, the performance shoe maker expects sales of $1.95 billion, up from $1.36 billion last year.
ONON was IBD Stock Of The Day on Thursday. On Holding stock has a 98 Composite Rating. ONON has a 95 Relative Strength Rating and a 80 EPS Rating.
S&P 500 Stocks: Arista Networks Stock
ANET fell 1.8% to 165.58 Friday, holding above two possible early entries. Investors could also wait to see if ANET forges a handle in the coming days.
The S&P 500 component is in consolidation is about 7% below an official 178.36 buy point, according to MarketSmith.
ANET stock rallied from the 21-day/10-week lines this week, breaking a trendline in a consolidation. On Thursday, shares cleared a short-term high of 164.20.
Volume was below average on Wednesday-Thursday but picking up from prior days. Trading was lighter on Friday.
ANET stock climbed 4.8% for the week, closing relatively high in the range.
The base had ugly action in June, but has improved.
The computer networker has been consolidating after selling off on its first-quarter earnings report and outlook.
The S&P 500 component sells computer network switches that speed up communications among racks of computer servers packed into "hyperscale" data centers. These internet data centers are designed to ratchet up computing horsepower when demand surges.
In 2022, Facebook-parent Meta Platforms accounted for 26% of Arista revenue. ANET captured 16% of its sales from Microsoft.
The S&P 500 stock has a 97 Composite Rating. ANET has a 91 Relative Strength Rating. The EPS Rating for the S&P 500 stock is 98.
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