S&P 500 Giant AMD Leads 5 Stocks Near Buy Points

S&P 500 stocks Advanced micro-systems (AMD) and Arista Networks (ANET) with the support of Roger Federer On hold (ONON), Cloudy (NET) and Shift4 Payments (FOUR) are the center of attention this week.


With the market in a confirmed uptrend and the S&P 500 hitting a new 14-month high, the past week was a good time for investors to increase their exposure.

However, with the Nasdaq looking extended, the risk of another market pullback has returned. Several of the stocks on this list fell on Friday as major indexes pared their gains.

Meanwhile, the market is sure to be shaken up next week as the earnings season gathers pace, with You’re here (TSLA) and netflix (NFLX) on tap.

Against this backdrop, investors should keep an eye out for these five stocks that are trading around buy points. Of these five stocks, ONON is on the IBD ranking. On Holding and ANET are on SwingTrader and the IBD 50. Cloudflare was the IBD stock of the day on Friday.

S&P 500 Stocks: Advanced Micro Device Stocks

AMD hit a high of 122.12 during Friday’s trading, bouncing off its 21-day and 10-week lines, erasing the steep trendline and July 5 high at 117.66. But shares essentially erased the gains, closing up 2 cents at 115.94. For the week, AMD stock rose 2.45%, in the middle of its range.

Investors could still use 117.66 as a buy point, but Friday’s high may end up being the best bet.

Chip giant S&P 500 competes with Nvidia (NVDA) as the leader in AI chips. Nvidia and AMD stocks have tended to trade chip leadership in recent years, and it could happen again. However, currently Nvidia is the leader with AMD somewhat behind.

Last month, the chipmaker unveiled its latest semiconductor and data center products optimized for artificial intelligence. AMD’s AI metrics position the chipmaker to take advantage of what will represent a total addressable market opportunity of $150 billion in the data center market by 2027.

The market will be around $30 billion in 2023, according to the company.

On Wednesday, TD Cowen analyst Matthew Ramsay raised AMD’s price target to 135 from 115. Ramsay retained an outperform rating on the S&P 500 component. Ramsay wrote that he believed investors were prepared to mixed reports for the second and third quarters, as the macroeconomic environment remains challenging.

Advanced Micro Devices stock has a composite rating of 92 out of 99. S&P 500 stock has a relative strength rating of 95. The EPS rating is for the stock 72 out of 99.

Cloud Flare Stock

NET fell 1.6% to 66.54 on Friday, reversing lower near a buy point. Cloudflare formed a flat bottom with a buy point of 72, according to MarketSmith analysis. The current flat base is directly next to the stock’s previous valid base.

NET stock briefly crossed a trendline and moved above Wednesday’s high at 69.61 intraday.

Launched in 2009, San Francisco-based Cloudflare accelerates and secures web applications delivered through its global network.

The cybersecurity game took a hit on Wednesday as Microsoft (MSFT) has expanded its product offering, putting pressure on Cloudflare and other cybersecurity stocks. Cloudflare stock was Friday’s IBD stock of the day.

But for the week, NET stock jumped 6.7%, rebounding from the 10-week line.

On April 28, Cloudflare plunged 21% after the company reported first-quarter earnings that beat estimates, while revenue roughly met expectations. But the company also gave a weak revenue outlook for the June quarter and full year 2023. Shares have been bouncing back since early May.

Cloudflare said it earned 8 cents per share in the first quarter, compared with a profit of 1 cent a year earlier. Revenue soared 37% to $290.2 million.

NET has a perfect composite rating of 99. Cloudflare stock has a relative strength rating of 89. The EPS rating for NET is 80 out of 99.

Shift4 Payments Stock

FOUR fell 3.2% to 67.13 on Friday, back below a key resistance level around 69. Shares rose in volume over the previous two sessions, closing above the zone of 69 on Thursday, but FOUR action ended both days. On a positive note, Friday’s slide came on a slight trade, while FOUR stock rebounded slightly from the 21-day line.

For the week, the stock was up 1.5%, but in the lower third of its range.

At this point, investors may want to see if Shift4 Payments stock forms a handle based on Thursday’s high at 71.03. The current official buy point is 86.40.

Shift4 Payments is an independent provider of payment acceptance and processing technology solutions in the United States. Its payment processing includes credit, debit, contactless card, and QR payment, among other alternative payment methods.

On Thursday, Goldman Sachs lowered its price target on the Shift4 Payments sock to 88 from 90. Analyst Will Nance maintained a buy rating on the stock with mixed expectations for consumer spending and payment companies for the rest of the year.

In May, the company announced better-than-expected first-quarter financial results. Shift4 Payments saw EPS soar 240% to 51 cents. Revenue increased 34% to $200 million.

The stock has a composite rating of 93. FOUR has a relative strength rating of 91. The EPS rating for FOUR is 82.

About owning shares

ONON slipped 1.2% to 33.14 on Friday, just below a valid buy point. But shares jumped 5.4% for the week.

On Thursday, ONON broke above a trendline entry but failed to close above a 33.67 cup buy point with a handle, according to MarketSmith.

ONON stock rallied after being sold off amid concerns over excess inventory following its May 16 first-quarter earnings report.

On Wednesday, Piper Sandler analyst Abbie Zvejnieks touted ONON stock as a “top growth idea” and raised the company’s price target to 39 from 38.

The Swiss sports footwear and apparel maker, behind popular running shoe brand On, went public at $24 per share in September 2021 and is backed by tennis champion Roger Federer.

The company exceeded first-quarter estimates in May. Earnings tripled to CHF 0.15 per share (Swiss francs) adjusted for a 78.3% revenue increase to CHF 420.2 million. In US dollars, profits climbed 17 cents on sales of $470.6 million.

The company raised its net sales outlook to at least CHF 1.74 billion, up slightly from its March forecast of CHF 1.7 billion. In dollars, the performance shoe maker forecast sales of $1.95 billion, up from $1.36 billion last year.

ONON was IBD Stock Of The Day on Thursday. On Holding stock has a composite rating of 98. ONON has a relative strength rating of 95 and an EPS rating of 80.

S&P 500 Stocks: Arista Networks Stock

ANET fell 1.8% to 165.58 on Friday, holding above two possible early entries. Investors could also wait to see if ANET forges a handle in the coming days.

The S&P 500 component is consolidating is about 7% below an official buy point of 178.36, according to MarketSmith.

ANET stock rallied from the 21-day/10-week lines this week, breaking a trendline in a consolidation. On Thursday, shares hit a short-term high of 164.20.

Volume was below average Wednesday through Thursday, but picked up from previous days. The exchanges were lighter on Friday.

ANET stock rose 4.8% for the week, closing relatively high in the range.

The base had lousy action in June, but has improved.

The IT networker consolidated after selling its first-quarter earnings report and outlook.

The S&P 500 component sells computer network switches that speed up communications between racks of computer servers clustered in “hyperscale” data centers. These Internet data centers are designed to increase computing power when demand increases.

In 2022, Facebook-parent Metaplatforms (META) accounted for 26% of Arista’s revenue. ANET made 16% of its sales from Microsoft (MSFT).

The S&P 500 stock has a composite rating of 97. ANET has a relative strength rating of 91. The EPS rating for the S&P 500 stock is 98.

Please follow Kit Norton on Twitter @KitNorton for more coverage.


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