Dow Giant Boeing, EV Chip Play Lead 5 Stocks Near Buy Points In Choppy Market

Boeing (BA), Monolithic power systems (MPWR) And Working day (WDAY) are this week’s top stocks to watch as they operate on traditional buy points or offer early entries. Lennar (LEN) And Aehr test systems (ah) also make the cut.


THE sotck exchange is in a correction, making it time to create watchlists.

Most of the major stocks this week have relative lines of force which are moving sideways, a sign of resilience in the current volatility. Lennar has an RS line starting to trend higher. A rising RS line means a stock is outperforming the S&P 500.

The MPWR stock has found a place on the IBD Swing Trader.

WDAY and Monolithic Power shares belong to the IBD List 50 highest growth values.

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BA share

Boeing stock has a new flat base with a 221.43 point of purchase after Friday. Shares have consolidated over the past month after a huge run from late September. BA stock is below the 50-day line, but a strong move above the 50-day line, clearing the March 14 high at 213.56, would offer an early entry on the trendline.

BA stock fell 1% to 201.05 for the week. The RS line is not far off a 52 week high.

Aviation and defense giant Dow Jones surged in 2023 as commercial air travel recovers and its order pipeline is growing.

This fuels Boeing’s profits. Analysts polled by FactSet expect Boeing profit of four cents in 2023, a big improvement from a loss of $11.06 in 2022. In 2024, Wall Street forecasts Boeing profit of $5.80 per share.

The planemaker had suffered in recent years from the travel-hit Covid pandemic and a series of setbacks to key planes including the 787 and 737.

Boeing displays are mixed in terms of key IBD ratings. He earns an IBD composite score of 73, EPS Ranking of 26 and RS Ranking of 93, all on a best possible 99.

The relative strength rating of 93 means that BA stock has outperformed 93% of all stocks in IBD’s database over the past 12 months.

MPWR action

Monolithic Power continues to build a deep cup with handle with a buy point of 530.85, rising nearly 2% to 488.31 for the week.

Early last week, MPWR stock found support at the 10-week line on Monday, then recovered to the 21-day exponential average on Thursday. A move above the March 9 high at 516.69 could offer early entry.

The RS line has reached an all-time high in recent days, a bullish sign ahead of a possible breakout.

The fabless chipmaker belongs to the IBD Long Term Leaders watch list.

Its technologies drive power solutions across a wide range of industries and applications, including industrial applications, telecommunications infrastructure, cloud computing, automotive and consumer.

The stock MPWR carries a perfect Comp rating of 99 and an EPS rating of 99 as well, in addition to an RS rating of 93.

Monolithic Power’s earnings soared 67% in 2022. They are expected to slow to a 6% gain in 2023, then rebound to 18% growth next year.

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WDAY Stock

Workday shares have a new flat base with a buy point of 193.74. They are still within the range of an earlier break beyond an entry of 184.60 from a cup-shaped base. Investors could also use this week’s bounce on the 50- and 21-day lines as an early entry.

WDAY stock jumped 5.9% last week to 188.77. The RS line is up, at a 10-month high.

Workday stocks have a composite rating of 98, an EPS rating of 93 and an RS rating of 87.

Late last year, the enterprise software maker raised its subscription revenue forecast for 2023. The company sells human capital management software, such as payroll tools. Also, it has extended to financial software.

Workday revenue is expected to rebound 40% for the full year. They were down nearly 9% last year amid the bear market for tech stocks.

LEN Stock

Lennar shares are trading at a flat-based buy point of 109.38. They bounced near the 50-day line on Thursday to offer early entry. On Wednesday, LEN stock initially rose on the back of strong earnings and guidance for Lennar, but reversed lower.

But weekly action was strong: Lennar stock jumped 6.3% to 103.50, bouncing off the 50-day line. His RS line hit a 52-week high.

The homebuilder boasts a Comp 97 rating, an EPS 87 rating, and an RS 94 rating.

Last year, Lennar suffered in a tough housing market. Rising interest rates weighed on buyer demand and new orders fell. Challenges remain, but he expects to benefit from a significant shortage of housing, particularly housing for the workforce.

Lennar’s profits rose 10% in 2022, but fell 21% in the fourth quarter. They are expected to plunge 37% in 2023 before rebounding 9% next year.

AEHR Stock

Aehr Test Systems has a new base with a buy point of 37.67.

AEHR stock was up 10.3% at 32.25 last week, closing just above the 21- and 50-day lines. A bounce above Friday’s high of 33.84 could offer early entry. The AEHR stock is prone to wild moves, so it’s probably better to look for early entries than traditional breakouts.

The RS line flattened out after hitting highs.

The semiconductor equipment maker earns a composite rating of 99, an EPS rating of 78 and an RS rating of 99.

Electric vehicles (EV) are driving strong revenue growth for Aehr Test Systems.

The Fremont, Calif.-based company manufactures semiconductor test and reliability qualification equipment. Aehr’s biggest growth comes from silicon carbide, or SiC, power chip testing and burn-in systems for electric vehicles. Break-in is a stress test of a component to detect problems.

Aehr’s profits skyrocketed last year. They more than tripled in the last quarter and are expected to jump 42% for the year as a whole.

For more quality stocks with strong RS lines, check out IBD’s Strength relative to the new list of highest actions. Our MarketSmith stock research platform also has a stock picker with RS lines hitting new highs.

For other great stock ideas, check out IBD’s exclusive watchlists, like the INN 50 and the IBD Big Cap 20.


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