Share Visa and Marriott International (MAR) erupted on Friday as travel demand surged ahead of the summer holiday season. artificial intelligence plays Marvell Technology (MRVL) and MongoDB (MDB) is also on this week’s list, along with the fast-casual restaurant giant Chipotle Mexican Grill (CMG).
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MDB stock is on the IBD ranking, while Chipotle is on the ranking watch list. MongoDB and CMG stocks are also listed on IBD 50.
Marvell Technology
Santa Clara, Calif.-based chipmaker Marvell exploded in late May on thinking AI would be a major growth driver.
The company beat first-quarter estimates for its May 25 results, announcing adjusted earnings of 31 cents per share on revenue of $1.32 billion.
MRVL stock emerged from a consolidation after Marvell guided its AI chip business to $800 million, or 15% of sales, next year from $200 million, or 3% of sales l ‘last year. The company is also seeing its AI sales double this year and next.
MRVL widened an earnings gap and largely held that gap, finding support at its 21-day exponential moving average. A move above Thursday’s high of 60.43 would offer early entry to break a downtrend while staying close to the 21-day line
Marvell needs another week to form a proper base.
The stocks have a composite rating of 87, which combines various technical indicators into one easy-to-read score. Marvell’s relative strength line is off the May 26 highs and it has an RS rating of 93. earned an EPS rating of 57.
MongoDB
New York-based MongoDB provides an open-source database platform for enterprises and operates on a subscription-based software-as-a-service business model.
On June 2, MongoDB soared 28% after the company announced a 180% increase in quarterly profit to 56 cents per share from the year-ago period. Revenue increased 29% to $368.3 million.
And analysts expect earnings to rise again, predicting a 92% jump to $1.56 per share in fiscal 2024 and 34% growth in fiscal 2025.
Tigress Financial raised its price target on MDB stock to $490 from $365 on Wednesday and maintained a buy rating on its shares. The company noted that the growing integration of AI tools and capabilities is expected to bring a significant benefit to customer penetration, revenue growth, and enterprise adoption of MongoDB.
MongoDB leads the computer-database software group, according to the IBD Stock Checkup. The MDB stock is on the IBD 50 list and the Leaderboard list.
MongoDB stock traded in a tight three-week pattern after a big gap after its June 2 earnings. Shares eclipsed the buy point of 398.89 during the week. MongoDB’s buy zone extends all the way to 418.83.
MDB stock has a perfect composite rating of 99 and a strong EPS rating of 83. MongoDB’s relative strength line is at 52-week highs and it has an RS rating of 97.
Marriott International
Hotel stocks are trying to join the recent rally in cruise lines and airlines as travel demand increases for summer holidays.
In early April, 53% of all Americans and 81% of leisure travelers were planning trips in the next six months, the US Travel Association noted on June 2. And 26% of Americans plan to increase their spending on leisure travel in the next three months. , versus 19% in Q1.
Meanwhile, the hospitality industry got off to a good start this year. In the first quarter of 2023, U.S. hotels exceeded pre-pandemic (Q1 2019) revenue per available room levels by 13%, PricewaterhouseCoopers reported in May.
Marriott International (MAR) is reaping the rewards, with an average 79.25% rise in earnings over the past four quarters on an average 43% increase in revenue.
MAR stock broke Friday after breaking above the buy point of 183.27 for its flat base. The current buy zone, which extends 5% beyond the buy point, extends up to 192.43.
Marriott ranks 2nd in the Leisure-Accommodation group according to the IBD Stock Checkup
Marriott stock has a composite rating of 92, an EPS rating of 78 and an RS rating of 85.
Visa Stock
Payment processing giant Dow Jones Visa (V) was the IBD stock of the day on Thursday. Visa, which makes money on credit and debit transaction fees and cross-border payments, is buzzing on strong consumer spending in the United States and overseas travel.
Visa said cross-border payments were up 17% from a year ago in May, compared with growth of 5% in the United States. The company has averaged 22.3% earnings growth and 15.3% revenue growth over the past four quarters.
On Wednesday, Visa announced the acquisition of Brazilian payments infrastructure startup Pismo for $1 billion in cash.
Visa stock broke out of its own flat base on Friday after breaking above its buy point of 235.57. V shares surged above their 50-day moving average on Thursday, offering early entry.
Rival MasterCard (MA) is also workable on a similar chart. Shares also moved above their fixed base buy point of 392.20 on Friday as well.
Visa shares have a composite rating and an EPS rating of 93, as well as an RS rating of 79.
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Chipotle Mexican Grill
Based in Newport Beach, CA Chipotle Mexican Grill (CMG) is a member of the IBD 50 list and on the Leaderboard watch list. CMG stock also tops the Retail-Restaurants group, according to the IBD Stock Checkup.
Chipotle’s earnings growth has accelerated over the past four quarters, peaking 84% at $10.50 per share in the first quarter of 2023. The company also posted average quarterly sales growth of 15% in during this period.
CMG stock rebounded from the 21-day and 10-week lines, offering early entries before closing just below the official buy point of 2,139.88 on Friday.
Chipotle’s stock has a perfect composite rating of 99 and an EPS rating of 99. CMG’s relative strength line is off the highs of early May and it has an RS rating of 93.
You can follow Harrison Miller for more stock info and updates on Twitter. @IBD_Harrison
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