Deere leads 5 stocks with hot products near buy points

deer (EN) And Dexcom (DXCM), which has a small new glucose monitoring system, tops this weekend’s watch list with 5 stocks near buy points. All stocks have selling momentum that is expected to continue despite some economic uncertainty. vertical (VRT), which supplies data centers with power and thermal management products, a leader in digital display verification DoubleVerify (dv) and McDonald’s fries purveyor Lamb Weston (Lw) complete the list.

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All 5 stocks on the watch list were recently named IBD Stock of the Day. Deere shares are part of the flagship IBD-50 list of the leading stocks.

deer

On Friday, Deere released fiscal first quarter results highlighted by 124% EPS growth and a second straight quarter of revenue growth of over 30%. Deere raised its 2023 net income guidance to $8.75-9.25 billion from $8-8.5 billion.

Sales of Deere’s production and precision farming equipment should grow about 20% this year, helped by price increases of 14%. Sales of construction and forestry equipment are expected to increase by 10% to 15%, due in large part to price increases of 9%.

As demand exceeds industry capacity, dealer inventories are likely to remain tight, lowering risk to the outlook.

Deere shares rose 7.5% to 433.31 on Friday, rebounding above its 50-day moving average.

After attempting to break out of a 7-month consolidation in November, Deere stock has been on a flat footing for the past 11 weeks. The buy point is at 448.50. However, Friday’s convincing move above the 50-day moving average offers an aggressive early entry.

Dexcom

Dexcom just announced U.S. availability of its G7 continuous glucose monitoring system for diabetes patients on Friday. The small patch, which can be worn on the back of the arm and provides data to an app, is 60% smaller than its previous version.

The company announced Monday that the device has been approved for Medicare coverage. The European market launch last autumn got off to a strong start. Dexcom says it’s converting users of other body-worn devices and adding patients who previously relied on finger sticks and test strips.

Dexcom previously released Q4 results on Feb. 9, beating estimates and removing near-term risk. Dexcom earned 34 cents a share versus a loss of one cent a year ago.

DXCM stock jumped above its 50-day moving average on Feb. 10 amid gains. A daily chart shows that it has pulled back on weak volume. DXCM stock could complete a hold with a buy point of 121.21 after Tuesday. However, the grip on the weekly chart is already complete, with the same buy point.

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vertical

Headquartered in Columbus, Ohio, with 24,000 employees and offices in more than 130 countries, Vertiv will report fourth-quarter results early Wednesday. After an earnings slump in late 2021 and into the first half of 2022, Vertiv has recovered strongly. Earnings per share are expected to rise 675% to 31 cents on revenue growth of 19% to $1.68 billion.

In its Q3 report, Vertiv said its backlog grew to $4.7 billion, up 46% from the end of 2021.

Vertiv offers comprehensive power and cooling systems, as well as monitoring and services. Being a one-stop shop, coupled with its breadth of operations, gives it an edge over the competition.

VRT shares rose 0.2% to 16.06 on Friday. VRT stock is a hair below a buy point of 16.17, 10 cents off its Nov. 10 high.

VRT’s line of relative strength, the blue line on the IBD charts that represents the company’s progress against the S&P 500, is also on the cusp of a 52-week high after crashing in Q4 results a year ago was.

DoubleVerify

DoubleVerify measures ad views and consumer engagement so businesses can determine if they’re getting enough money to advertise. The company also offers complementary services, e.g. B. Ensuring that ads are placed in appropriate environments for brands, which is a big topic for social media lately.

The company’s largest distribution channels were metaplatforms (META) Facebook and Instagram as well alphabet‘S (Google) YouTube, but it’s expanding to serve advertisers on TikTok, LinkedIn, Reddit, and Twitch.

DoubleVerify also has a new partnership with Netflix, which launched an ad-supported service in November.

“We expect deal volume to continue to be the key growth driver in the short term, driven by subscriber acquisitions, international expansion and channel expansion, particularly in social media, Internet TV and retail media,” said Youssef Squali, analyst at Truist Securities, in a recent communication to customers.

DoubleVerify earnings are due March 1st. One strategy to reduce risk related to earnings is to use call options.

DV shares fell 1.1% to 27.38 on Friday but remained above its 21-day moving average. It works on a mug-and-handle basis with a buy point of 28.99.

Lamb Weston

Lamb Weston, The Eagle, Idaho frozen potato and french fries giant, sells retail and private label products worldwide. MC Donalds (MCD), its largest customer, accounted for 10% of revenue in fiscal 2022.

Lamb Weston’s second-quarter earnings report in early January was an eye-opener. Revenue growth accelerated to 27% while the company massively raised full-year guidance to $3.75-$4 per share from $2.45-$2.85.

The company said pricing measures to counteract higher costs for potatoes and other inputs to boost results. However, heavy food service activity could be a bonus. Sales at restaurants and bars rose 25.2% in January from a year earlier, the Commerce Department said.

Since appearing on the updated guidance on Jan 5th, LW stock has carved out a flat base with a buy point of 100.87. LW shares rose 0.5% on Friday to 100.48.

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