Google stock and Tesla (TSLA) China EV rival XPeng (XPEV) lead this weekend’s watch list of stocks near buy points. Also on the list, Steel Dynamics (STLD) got a lift from the $1.2-trillion infrastructure bill. Eli Lilly is rising partly on hopes for its Alzheimer’s drug, while T. Rowe Price has a renewed spring in its step after announcing a key acquisition, its first major deal in decades.
Eli Lilly was featured as Friday’s IBD Stock Of The Day, while Steel Dynamics and Google (GOOGL) were IBD’s featured daily stock on Oct. 20 and Oct. 27, respectively, as each cleared an early entry point.
Google’s search dominance continues to contribute to antitrust headaches, but that foundation kept the company from getting thrown off its stride in a challenging Q3. As Apple’s privacy change, giving iPhone users the chance to opt in or out of letting apps track their online activity, created havoc for the likes of Facebook (FB) and Snap (SNAP), Google emerged unscathed.
Q3 results reported on Oct. 26 weren’t flawless. YouTube ad revenue of $7.42 billion and Google Cloud sales of $4.99 billion were both on the light side of expectations. But both rose more than 40% and have a long growth runway ahead.
Following earnings, Google stock surged 5% to 2924.35. That took GOOGL stock past an early entry point of 2864.84, 10 cents above the Oct. 19 high. GOOGL stock also squeaked past a 2925.18 buy point from an eight-week flat base.
Since that rally on the day after the Q3 report, GOOGL stock has oscillated above and below that buy point. On Friday, GOOGL stock climbed 2% to 2973.56, bouncing off its 21-day average to reclaim the buy point.
October was a mixed month for EV sales by Chinese firms, as downtime at Nio (NIO) and the chip shortage curtailed output. But XPeng stood out, as deliveries rose 233% to 10,138.
“We continue to like XPeng near-term given cleanest volume ramp-up and execution through the semis bottlenecks,” wrote Deutsche Bank analysts Emmanuel Rosner and Edison Yu in a Nov. 2 note.
The firm also touted XPeng after the Chinese company’s Oct. 24 tech day featuring autonomous efforts, robotics, fast-charging and a flying car. The analysts said they consider XPeng to be “the technology leader of the Fab Four” Chinese EV makers.
Nio’s big tech day is set for Dec. 18. The other companies are Li Auto (LI) and WM Motor Technology Group.
On Friday, XPeng announced a new SUV that it will unveil on Nov. 19. It’s unclear if the SUV will compete with Tesla Model Y crossover SUV. The Xpeng P7 sedan is a rival to the made-in-China Model 3.
XPEV stock rose 2% to 48.53, reclaiming a 48.08 buy point from a 16-week consolidation. For the week, Xpeng climbed 4.6%.
XPeng stock first took out the buy point on Oct. 25 on the heels of its tech day, with a 11.5% move that also carried it past an early entry.
Steel Dynamics, like Nucor (NUE) and other U.S. steel producers, have been posting record earnings amid high steel prices. Like the rest of the group, STLD stock also stands to benefit from the infrastructure bill, which includes $550 billion of new spending.
What sets Steel Dynamics apart from the group is that it is ramping up new capacity and could see a 15%-20% rise in shipments next year, while the bulk of big spending initiatives are winding down.
STLD stock, which dipped 0.1% to 66.16 on Friday, is about 4% below a 69.01 cup-with-handle buy point.
STLD stock has been moving sideways for the past six months. So its relative strength line, the blue line in the charts provided that tracks its performance vs. the S&P 500, has been trending lower.
Investors are keenly awaiting results of an Eli Lilly study that will pit its own experimental Alzheimer’s drug, donanemab, against the Biogen (BIIB) drug Aduhelm, which is already approved despite a sharp divide among experts.
But that’s not all that LLY stock has going for it. Q3 sales rose a healthy 18%, helped by its Covid antibody therapy. Lilly also is seeking priority review of tirzepatide in treating type 2 diabetes.
LLY stock offers another cup-with-handle base. On Friday, LLY stock closed off 1.1% at 259.65, 4% below a 271.21 buy point, according to MarketSmith chart analysis.
T. Rowe Price stock offers a third cup-with-handle buy point on this weekend’s watch list. The investment management firm has seen its shares rise 43% this year, thanks in no small part to the stock market’s growth, which boosts assets under management and associated fees.
However, TROW stock’s Q3 report also had some soft spots. Mutual fund assets fell amid competition from ETFs, while fee revenue came in below expectations.
That backdrop helps explain why TROW is going with a big acquisition, a $4.2-billion deal for Oak Hill Advisors. That will give it a big foothold in the attractive $1-trillion alternative credit market.
TROW stock rose 1.4% to 216.98 on Friday. That puts TROW within 3% of a 224.66 buy point.
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