The stock market rally has shifted back into gear, giving investors a green light to be adding exposure. Meta stock is rebounding near a buy point, with fellow IBD 50 members Monday.com (MNDY) and Royal Caribbean (RCL) also offering entries. Nvidia (NVDA) chipmaker Taiwan Semiconductor (TSM) is just below a breakout while off-price retail giant TJX (TJX) is in a buy zone.
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Nasdaq S&P 500 Extend Win Streaks; Arista Networks, Royal Caribbean, Stride In Focus
IBD last week upgraded its recommended market exposure level to 60% to 80% invested as the S&P 500 and Nasdaq reclaimed their 50-day moving averages. Still, investors should add exposure gradually and be ready in case the stock market hits another snag.
Meta Stock
Meta Platforms (META) rebounded above its 50-day line early last week. Shares on Thursday cleared their 21-day exponential moving average and broke a short downtrend, offering an early entry opportunity.
META stock has an official 542.81 buy point for a consolidation. Investors could also use 544.23 as an alternate entry for a three-weeks-tight pattern.
DA Davidson initiated coverage of META stock Tuesday with a buy rating and a $600 price target. It called Meta a top pick in the megacap space and cited its “combination of emerging leadership in the most important future technology platforms and an attractive relative valuation.”
Meta stock was added to IBD Leaderboard on Friday.
Monday.com Stock
Monday.com also flashed an early entry opportunity after jumping from its 21-day line Thursday to clear a short downtrend. MNDY shares rebounded strongly off their 50-day line Wednesday, after pulling back to the top of several months of trading.
Investors could also use 272.77 as an entry for a three-weeks-tight pattern.
The stock has trended higher this year after peaking then slumping over the past several months of trading, stretching back to March.
The project management software provider most recently gapped up on its Aug. 12 earnings beat. Monday.com reported Q2 earnings of 94 cents per share adjusted, crushing expectations for 56 cents. Revenue rose 34% to $236.1 million, also beating views. The company in late August also announced it hit $1 billion in annual recurring revenue.
MNDY stock has rallied more than 36% so far this year.
TJX Stock
Department store giant TJX has pulled back from its record high from late August, but not by much. The company on Aug. 21 topped Q2 expectations with earnings of 96 cents per share on $13.47 billion in revenue, while comparable sales growth also outpaced estimates.
TJX’s full-year earnings and comparable sales guidance also matched FactSet forecasts.
Retailers have been a mixed bag this year as consumers trade down amid budget constraints. TJX has been among those showing strength, as off-price names see greater traffic. Meanwhile, the best-positioned retailers this summer have been able to forecast demand and manage inventory to prevent steep discounts, analysts told IBD.
TJX stock is consolidating in a buy zone, above a 115.34 buy point for a flat base.
Shares initially broke out on Aug. 21 after earnings.
Although TJX stock pulled back, it found support along its 21-day line, before pushing off that level late last week.
TJX is up nearly 28% in 2024.
Royal Caribbean Stock
Royal Caribbean is trending back toward its record high from late July. The cruise giant on July 25 reported a 76% increase in earnings to $3.21 per share adjusted, well ahead of estimates for $2.76 per share. Revenue jumped almost 17% to $4.11 billion, also beating expectations of $4.05 billion.
Meanwhile, vacation travel continues to pick up. Royal Caribbean noted its Q2 bookings outpaced 2023 levels while at record prices. The company is in a record booked position for 2024 sailings, and reservations are already increasing for next year.
“We have seen strength for all key products and are already taking more bookings for 2025 sailings than 2024,” CEO Jason Liberty said in the release. Rival Carnival (CCL) also reported record volumes for 2025 sailings in its Q2 report from June.
Royal Caribbean guided a 68% increase in full-year adjusted earnings to range from $11.35 to $11.45 per share. FactSet expects 2024 earnings of $11.49 per share.
RCL stock has a 169.47 buy point for a cup-with-handle base. Shares briefly topped that entry on Friday. Royal Caribbean stock rose for the week. Shares retook the 50-day and 21-day lines on Wednesday, then flashed a buy signal Thursday after breaking the downtrend of the handle.
Royal Caribbean rallied about 30% so far this year and hit a record high of 173.37 in late July.
Taiwan Semiconductor
Taiwan Semiconductor is No. 1 in the Electronics-Semiconductor Manufacturing Group according to the IBD Stock Checkup. The company makes chips for tech behemoths like Nvidia, Apple (AAPL), Broadcom (AVGO), among others.
AI and semiconductor stocks leapt last week, as part of a broader industry revival following Nvidia’s slump on its Aug. 28 earnings beat. Taiwan Semi reported strong August sales on Tuesday, While Nvidia CEO Jensen Huang hailed “incredible” demand for his company’s AI processors.
TSM stock is nearing a 175.45 buy point for a cup-with-handle base. Shares rebounded above their 50-day moving average, then cleared a trendlines from the top of the base and the handle.
Taiwan Semiconductor hit a record high of 193.47 on July 11. Shares vaulted nearly 66% so far this year.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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