Visa and wearable insulin pump maker Insulet, both S&P 500 members, lead this weekend's watch list of five stocks near buy points. Along with V and PODD, the list includes Israeli defense contractor Elbit Systems, Halozyme Therapeutics and Rubrik, a data-protection and cybersecurity play.
Rubrik stock is part of the IBD Leaderboard portfolio. Both Rubrik and Insulet stock are on the flagship IBD 50 list of leading growth stocks.
S&P 500 Set-Up
The S&P 500 inched down less than 0.1% on Friday, finishing the week down 0.5%. That's constructive action following the powerful nine-session, 10% rally that preceded it.
Yet it's also a sign that neither bulls nor bears know what to expect from weekend U.S.-China trade talks. For now, President Trump's trade war is still de-escalating, but that needs to go much further to avoid a big hit to the economy, which is losing momentum but hasn't yet rolled over.
The S&P 500 finished the week 13.6% above its 52-week closing low on April 8, though 7.9% below its Feb. 19 all-time closing high. The S&P 500 rally has yet to reclaim the 200-day moving average, which should keep investors on guard for a possible reversal.
For now, given current market conditions, IBD generally suggests investors keep most of their portfolio focused on stocks with an average true range of 6% or lower.
Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.
Visa Stock
The payment-processing giant and member of the Dow Jones Industrial Average was featured as IBD Stock Of The Day on Thursday. On April 29, Visa posted 10% EPS growth and 9% revenue growth on an 8% increase in payments volume for its fiscal second quarter.
Visa revenue is growing faster than payments thanks to its value-added services, which grew 22% from a year ago in the quarter. Such services include alternative payment methods, security and personalization of cardholder benefits.
Visa said that overall April payment volume held up, despite softer spending on travel and depressed business and consumer confidence. USB analyst Timothy Chiodo wrote in a post-earnings note that both Visa and Mastercard have "an ability to grow through moderate recessionary conditions."
Visa stock rose 0.4% to 352.54 on Friday. The modest move lifted Visa above the 351.86 middle of a double-bottom base-like formation, though on below-average volume. The official buy point is 366.54.
Visa has a 21-day ATR of 2.1%, according to MarketSurge.
Insulet Stock
Insulet soared 20.9% on Friday, following its Q1 report, making it the top performer among S&P 500 companies. EPS surged 67% on accelerated 29% revenue growth. The company raised full year guidance, with an outlook of 19% to 22% revenue growth, up from 16% to 20%, excluding currency shifts.
"Insulet remains in the pole position as the pump market is on the steep part of the adoption curve" in the U.S., wrote William Blair analyst Margaret Andrew. "Further, recent performance and accelerating adoption of pump and Omnipod therapy internationally sets up for years of growth in a $7 billion-plus market with collective adoption rates at half or less than half of the U.S. market."
Insulet's Omnipod 5 enables management of blood sugar via a smartphone without multiple daily injections and with zero finger sticks.
Insulet stock gapped above a 289.46 buy point from a 12-week consolidation, according to MarketSurge. PODD closed at 310.67, above the top of the buy zone, which runs through 303.93.
Investors could wait to see if Insulet pulls back into the buy zone or consolidates the gap-up for a few days.
PODD has a 21-day ATR of 4.5%.
Elbit Systems Stock
Elbit Systems' biggest segment is aerospace, focused on unmanned aerial solutions, which saw 9% growth in 2024 and accounted for 27% of total sales. The Israeli company has a diverse geographic sales base, with Israel accounting for 29% of sales, Europe 27% and North America 22%.
Of $11.7 billion in new orders last year, 44% came from Israel, reflecting the country's ongoing state of war. However, Elbit recently seems to be benefiting from Europe's accelerated defense build-up. In April, the company announced a $130 million contract from a European country for the supply of rockets for its Precise and Universal Launching System. It also announced a $100 million contract for its UT30 MKS Turret Systems for a European member of NATO.
First-quarter earnings are due on May 20.
ESLT rose 3% to 418.88 on the week, flirting with a 420 buy point from a six-week consolidation.
Elbit has a maximum 99 IBD Composite Rating based on both fundamental and technical factors, according to IBD Stock Checkup.
Elbit has a 21-day ATR of 2.6%.
Halozyme Stock
Halozyme's Enhanze technology transforms drugs traditionally given by intravenous infusion, which can take from 30 minutes to several hours, into a subcutaneous injection that takes mere minutes.
On Tuesday, Halozyme blew past Q1 estimates with 41% EPS growth to $1.11 and 35% revenue growth to $265 million. The San Diego-based company raised its full-year outlook for EPS to a range of $5.30 to $5.70, implying 25% to 35% growth. Revenue is seen up 18% to 26% to a range of $1.2 billion to $1.28 billion.
In the earnings statement, CEO Helen Torley highlighted four recently launched products, part of "an unprecedented set of 11 additional growth catalysts that have happened recently or are expected to happen in the coming months." She also touted a strong start to the year for "our current three blockbuster brands: Darzalex SC, Phesgo and Vyvgart Hytrulo."
Halozyme sued Merck last month for patent infringement connected to its subcutaneous Keytruda cancer medicine that is due to launch this year. Halozyme said that it expected Merck to obtain a commercial license, but that it failed to do so.
HALO stock surged 18.1% on Wednesday on the strength of earnings. Shares gapped above the 50-day moving average, flashing an early entry opportunity, then kept powering higher past a 66 buy point.
HALO stock closed at 70.14 on Wednesday, above the top of the buy zone that runs to 69.30, but shares pulled back to 65.87 on Friday, just out of buy range.
The base starts in late March, but arguably Halozyme stock is in a consolidation going back to August 2024.
HALO has a 21-day ATR of 4.3%.
Rubrik Stock
Rubrik, a 2024 IPO, has yet to turn a profit, but the company says it's "winning the cyber resilience market," and the results seem to back that up.
The Palo Alto, Calif., company posted 47% revenue growth for its January fourth quarter in March. Q1 results are expected June 17, according to FactSet.
"Rubrik has continued (to) take share in the highly competitive backup market," William Blair analyst Jason Ader wrote on March 14. Ader touted Rubrik's "high pace of innovation," noting the Q4 release of multiple security-focused products and capabilities that build on its "market-leading data backup offering."
Adoption of new products by current customers has helped fuel net revenue retention above 120%, Ader said.
KeyBanc lowered its price target on RBRK to 76 from 82 on April 17, while keeping an overweight rating, saying that macro conditions may lengthen sales cycles.
RBRK rose 4.8% to 76.88 for the week, clearing a 76.11 buy point from a double-bottom base. The buy zone runs through 79.92.
Rubrik stock has rallied for five straight weeks, vaulting from the April 7 low of 47.35.
RBRK has a 21-day ATR of 4.8%.
