Stocks To Buy That Are Approaching Buy Points

As the stock market tried to rebound this past week, there were several IBD 50 stocks to buy that either passed buy points or formed new bases and are approaching buy zones. Among those stocks are medical device maker Shockwave Medical (SWAV), gasoline and convenience store operator Murphy USA (MUSA), chip equipment marker Axcelis Technologies (ACLS) and roofing and braking systems manufacturer Carlisle (CSL).

X

Those stocks are more than likely to seize on the 2% gains this week of the S&P 500 and break out into new highs.

Shockwave Medical is a good example of a stock that’s forming a cup base with underpinnings of a rising relative strength line and support at its 50-day moving average and 200-day moving average. This IBD 50 Stock to Watch pick is about 8% below a buy point of 223.25.

SWAV Has All the Ingredients Of A Stock To Buy

Shockwave is No. 3 in IBD’s 75-stock Medical Systems/Equipment group. Listed by Relative Strength Rating, it ranks behind radiation device maker Sensus Healthcare (SRTS) and blood-system developer Haemonetics (HAE), according to IBD Stock Checkup. The group is ranked No. 24 among 197 industry groups.

Murphy USA is trading within a buy zone after breaking out above of a third-stage consolidation buy point of 262.68 on July 11. Since then it’s hovered around that level or higher. Q2 earnings are due on July 27. Analysts expect MUSA to earn $5.35 a share, up 12% from $4.79 a year earlier.

Axcelis is another stock that is trading within a base, but is 16% below a buy point of 83.83, according to MarketSmith chart analysis.

The stock ended down nearly 5% on Friday. Still, Axcelis stock is trading above its 50-day and 200-day averages and has a high Relative Strength Rating of 98.

Carlisle And SolarEdge Also Offer Buying Opportunities

A better buying opportunity may be Carlisle, which is less than 3% away from a 272.68 buy point of a double-bottom base. The stock is trading above its 50-day and 200-day lines.

With Q1 earnings growth of 209% under its belt, analysts expected Carlisle to post EPS of $5, a 131% increase, when it reports next week. CSL stock has also earned a spot on the latest list of new buys by the best mutual funds. And it sports a relative strength line Blue Dot on its MarketSmith stock chart.

A fifth stock that is also worth mentioning is SolarEdge Technologies (SEDG). It’s an Israeli-based solar energy stock. The stock has formed a nice cup-with-handle base with a buy point of 314.62. It is trading above its 50-day line and at its 200-day moving average. The one caveat to this stock is its lightly traded, and over the past couple weeks has failed to meet its 50-day moving average of trading volume.

Follow Michael Molinski on Twitter @IMmolinski

YOU MAY ALSO LIKE:

Time To Tweak Your Investments To An Inflationary Environment?

Get Full Access To IBD Stock Lists And Ratings

Is XOM A Buy Now After Q1 Earnings?

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest

What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It