With the market indexes looking to build on a budding rebound, medical stocks like Eli Lilly, Lantheus, UnitedHealth and Vertex Pharmaceuticals secured spots on IBD Leaderboard. Liquid natural gas leader Cheniere Energy and defense contractor Heico have also secured placement on this list of stocks to buy and watch.
UNH stock, featured in this column on July 25, has already released Q2 earnings and now trades near the top of its buy zone. But LLY, LNTH and VRTX are all set to report Thursday. LNG stock, featured last week, also faces a quarterly earnings review the same day, as does fellow Leaderboard stock Quanta Services.
New Frontier Energy, which sports the highest-possible 99 Composite Rating and has a spot on the IBD Leaderboard watchlist, reports Wednesday. NFE stock has formed a cup chart pattern showing a 52.47 buy point.
Find Stocks To Buy And Watch With IBD Leaderboard
Bases, Breakouts And Buy Zones To Watch
In terms of IBD Leaderboard stocks, New Frontier Energy is first on deck to report this week, kicking off a big week that will test each company's earnings, as well as bases, breakouts and buy zones in the stock charts.
While several Leaderboard stocks are testing buy points and buy zones, note that earnings season — and how Wall Street reacts to individual reports — always presents uncertainty. Make sure you have a sufficient profit cushion if deciding to hold through earnings. And note that it's always risky to buy a stock just before the company reports.
As noted earlier, NFE stock is closing in on a breakout as it retakes its 50-day moving average and its 21-day line moves back above its 50-day benchmark. Such action is a clear sign of rebounding technical strength. Its relative strength line has moved closer to a new 52-week high.
Meanwhile, LNG, PWR, LLY and LNTH stock are all in buy zones as they get ready to report Thursday. After breaking out to a new high last month, Vertex has fallen below its 50-day line.
Stocks with a bit more breathing room before their next report include Heico (reports Aug. 25), Ollie's Bargain Outlet (Aug. 26) and Catalent (Aug. 30).
On Friday, Heico blasted into buy zone, building on several days of strong demand last week. The stock is holding its ground at the top of its buy range after clearing a 151.36 buy point in a double bottom.
After a stay alongside New Frontier Energy on the watchlist, Ollie's stock has just become a full-fledged member on Leaderboard.
Ollie's graduates as it rebounds off the 50-day line to kick off the new week. The discount retailer now aims to retake its 21-day exponential moving after a breakout from a bottoming base in early June. It is finding support at the 50-day line. The RS line has backed off highs.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
