Your actions to watch for next week are united airlines (UAL), Regeneron Pharmaceuticals (REG), shelter him (SUNRISE), cabot (CBT) and Ashland Global Holdings (ASH).
Most of those stocks, in one way or another, are breaking through key resistance levels.
ALB shares are on the IBD leaderboard. CBT shares are on the leaderboard watch list. REGN shares are on the IBD 50 list.
United Airlines Stock
Shares of United Airlines rose 5.1% to 48.41 in the stock market on Friday, closing with a weekly gain of 11.2%. UAL shares rallied above their 50 and 200-day lines, breaking a broader downtrend that began last month.
Investors might have bought UAL stock as an aggressive entry on Thursday or even Friday morning, but it is starting to look extended from the 50 and 200 day lines.
The stock could form a new base after another week. Investors could also see the consolidation from late April as a check on a consolidation going back to March 2021. Either way, that would offer a buying point of 53.22. UAL shares have found resistance around 53.
United Airlines stock has a composite rating of 67. Its EPS rating is 51. It has the lowest composite rating of the stocks to watch listed here. UAL’s actions are definitely a recovery play.
Even amid signs that higher prices are forcing more customers to limit their spending to the essentials, the airline industry has reported strong pent-up demand for travel.
United this month issued a more optimistic unit revenue forecast for the second quarter, compared to 2019 levels, saying “the demand environment has continued to improve.” jet blue (JBLU) and south west (LUV) this week also said they were more optimistic about second quarter financials.
However, Delta said it would reduce flights this summer in an effort to better handle a variety of staffing and service-related issues. And airlines are grappling with rising fuel costs as Russia’s war in Ukraine continues.
Regeneron shares were on a cup basis with a buy point of 747.52. The shares rose 1.4% to 692.80 on Friday, up 4.8% on the week. REGN’s actions could be starting to take shape. The stock is just above its 50-day line after recovering that key level last week.
Biotech stocks have a composite rating of 94, similar to most other stocks to watch here. His EPS rating is 97.
REGN stock’s relative strength line is at all-time highs. The RS line, the blue line on the charts provided, tracks a stock’s performance against the S&P 500 index.
The company reported first-quarter earnings this month that beat expectations. US sales of its eye disease treatment Eylea posted a double-digit increase but missed forecasts.
Regeneron’s profit is expected to fall this year as revenue from Covid antivirals declines. But EPS should still be well above pre-2021 levels.
Ashland shares rose 8.9% to 108.84 last week, breaking a downward trend line that began last month. That breakout made ASH stock actionable, but it now looks somewhat extended from that early entry. Shares are on a flat base with a buy point of 111.15. The flat base dates back to April 20, but Ashland shares have been consolidating since late November.
The stock has a composite rating of 97 and an EPS rating of 94. The stock’s relative strength line is at its highest level since 2019.
Ashland is a supplier of additives, coatings and specialty ingredients. These include things like tablet coatings and thickeners for pharmaceuticals, skincare ingredients, and polymers for cleaning products.
The company, a recent stock of the day, on Wednesday announced a dividend increase and a new buyback program.
Albemarle shares rose 6.2% to 270.92 on Friday, capping a weekly gain of 14.6%. After hitting resistance around 248 for much of this year, ALB shares were up 7.4% on Thursday, offering a strong buying opportunity. But it definitely spread from now on.
ALB shares are on a deep cup basis with a buy point of 291.58. Ideally, the stock would form a handle before moving to a new high. The RS line for Albemarle is at historic levels.
The top lithium producer raised its full-year profit and sales forecasts last week, following “the completion of additional lithium contract renegotiations.”
That forecast came on top of another increase in its earnings and sales outlook earlier in the month, when Albemarle reported first-quarter results.
In February, Albemarle said only 40% of its supply was fixed, based on contracts signed before lithium prices soared last year due to electric vehicle demand and supply constraints.
Albemarle has a composite rating of 94. His EPS rating is 71.
Cabot shares rose 6.6% to 77.14 on Friday, beating a handle entry of 72.80. CBT shares are now slightly extended from the buy zone, which extends to 76.44.
Among other products, the specialty chemicals company manufactures substances that reinforce tires, as well as materials used in plastics, inks and batteries for electric vehicles.
The stock has a composite rating of 95 and an EPS rating of 69.
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