Three stocks on the Relative Strength At New High screen are in or near buy zones of double-bottom bases. SAP, Howmet Aerospace and Boston Scientific all have relative strength lines that hit 52-week highs, as shown by blue dots on their MarketSurge charts.
The RS line compares a stock's relative price performance vs. the S&P 500. All three stocks also have IBD Timeliness Ratings of A, indicating possible or potential relative price performance over the next 12 months.
SAP Stock Breaks Out Of Base
SAP is Monday's IBD Stock Of The Day.
Germany-based SAP broke out of an early-stage double-bottom base with a 280.44 buy point Monday. Shares are in the buy zone up to 294.46. The enterprise software stock soared around 7.5% in heavy volume last Wednesday after SAP topped first-quarter profit and sales forecasts late Tuesday.
Shares reclaimed their 50-day moving average on the earnings gap-up.
SAP's quarterly earnings grew a healthy 78% on a 12% revenue boost. Projections call for sales to increase an average 14% over the next three quarters.
Analysts' recently raised their 2025 profit forecasts to reflect 54% growth; they see 18% growth for 2026.
SAP makes enterprise software that connects business operations in the finance, procurement, human resources, supply chain and customer experience spheres.
Aerospace Stock Hits Buy Point, But Fades
Also, Howmet Aerospace broke out of a double-bottom base with a 138.06 entry point Monday morning, but the stock retreated back below the buy point by midday.
Shares are nearing their record high of 140.55 reached on Feb. 19, after five straight days of gains. The aerospace stock has gained nearly 25% so far this year. The Aerospace/Defense group ranks No. 5 out of the 197 industry groups Investor's Business Daily tracks.
Howmet's quarterly earnings growth slowed to 40% in the fourth quarter from two straight quarters of over 52% increases. First-quarter estimates project 35% earnings growth, before slowing to around 17% over the next three quarters. Howmet reports its first-quarter earnings results Thursday.
Full-year profit projections show 21% growth for both 2025 and 2026.
Howmet designs and makes jet engines, airframe structures and heat-resistant components for aircraft, and aluminum wheels for trucks and mass transportation vehicles. It also supplies Lockheed Martin with fighter-jet parts.
The aerospace stock holds a stellar 98 out of 99 IBD Composite Rating and a respectable 96 Earnings Per Share Rating.
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Boston Scientific Rides Earnings Wave Higher
Boston Scientific is nearing the 104.35 buy point of an early-stage double-bottom base. The IBD 50 and IBD Big Cap 20 name jumped 4.1% Wednesday after the medical device maker topped first-quarter earnings and revenue estimates. The stock reclaimed its 50-day line on Wednesday's move.
A trendline touching the highs in the base provides an alternative entry at Wednesday's high of 102.37.
Management raised its full-year 2025 profit outlook to $2.87 to $2.94 per share and expects its net sales to grow 15% to 17%. Quarterly sales estimates call for 19% growth in the first quarter then 11% growth over the next four quarters.
Boston Scientific was Thursday's IBD Stock Of The Day.
Mutual funds have bolstered their positions in Boston Scientific stock for eight straight quarters, according to IBD Stock Checkup. Boston Scientific makes technology and devices for heart-rhythm, cardiovascular and neurological disorders.
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