After a rough start, domestic indexes finished last week with gains. That sort of favorable action suggests that this week's stock movements near breakout points might have enough price and volume power to maintain advances.
That's great news for investors already invested in markets. What about stocks with entry points? Here are 3 stocks nearing their buy points. For more, check out these 3 Stocks Ready to Rebound in 2022.
3 Stocks Approaching Buy Points
Wyndham Hotels & Resorts (NYSE: WH) Since pulling back from a November 5 high of $89.48, the stock has been developing a flat base. For a time, the stock was maintaining support above its 10-day moving average, but on November 26 it fell 4.38% in greater volume than usual as the market as a whole retreated due to renewed Covid worries.
Naturally, a stock in the travel business is thought of as being highly susceptible to Covid slowdowns. Until December 21, when it rose 3.69 percent to end the day at $84.31, Wyndham stayed below its 50-day moving average. On Friday, the stock closed at $88.31, a fraction of a percent below that preceding peak now considered the buy point.
Wyndham Hotels and Resorts, like many hotel owners, was hit hard by the pandemic as both business and leisure travel declined. The firm stayed profitable in 2020 but earnings decreased from $3.28 per share in 2019 to $1.03 per share in 2020.
Analysts are forecasting earnings of $2.98 per share for this year, which is a gain of 189% over last year's bottom line.
Even if Wyndham fails to clear that buy point in the next week or so, it’s potentially still a good watch list stock as long as the forecasted rebound in earnings remains intact.
ArcBest (NASDAQ: ARCB) This is a mid-cap that specializes in less-than-truckload trucking services. The stock topped out at $91.33, reaching for a cup with handle and establishing a buy point above it. It subsequently advanced to a November 5 high of $116.79 before retreating and finding support at its 50-day average.
The current base has improved by 16% thus far, com- pared with a flat base. The present buy point is above the preceding high of $116.79, but if the stock progresses to form a handle, an entry point below that level may be available.
In each of the last five quarters, earnings have grown at double-or-triple digit rates. Revenue increased by double digits in four of the past four quarters. According to MarketBeat's income and revenue data, ArcBest outpaced both expectations and results in every of the prior five quarters.
In 2020, earnings rose from the previous year. Analysts predict earnings will rise 140% to $7.76 per share in 2020.
Analysts have a "buy" rating on the stock with a consensus price target of $96.64, implying a 13.44 percent downside, according to data.
Norfolk Southern (NYSE: NSC) The freight railroad operator, which is presently etching a cup-with-handle base with a buy point of more than $291.73. The stock surpassed the previous cup purchase price of $295.14, rising to a high of $296.06 on October 29th. It then reversed and is currently forming a second handle.
On December 20, like many other equities, Norfolk Southern fell sharply but recovered in the next three days.
On the eastern seaboard of the United States, Norfolk Southern is among the top railroads. With industry-wide gains in efficiency, costs should go down. The firm, for example, has been able to adjust to the existing labor scarcity by lengthening trains. To put it another way, despite a smaller workforce, more freight is moving. That's good news for revenue growth and cost reduction, which go hand in hand with earnings.
The Norfolk Southern Corporation is a large cap stock with a market capitalization of $69.97 billion.
The firm has increased its dividend in each of the past five years. In reality, data shows that the business has a longer history of dividend increases interrupted only by 2016, when the dividend was maintained at 2015 levels.
Norfolk Southern is a solid stock to watch or add to your portfolio due to its earnings growth, technical strength, and dividend growth.