Southern Copper (SCCO), Agnico Eagle Mines (AEM) and Novo Nordisk (NVO) rank among this week’s top stocks to watch as they set up in bases after recovering key levels. Monday.com (MNDY) and Vistra (VST) also made the cut.
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Banking Giants Kick Off Earnings Season Next Week
Novo Nordisk stock and Monday.com can be found on the IBD 50 list of top growth stocks. Agnico Eagle Mines stock and Novo Nordisk earn a spot on the IBD Leaderboard. Monday.com was Friday’s IBD Stock Of The Day.
The relative strength lines of all five top stocks to buy and watch are trending higher, not far from highs. A rising RS line, the blue line in the charts shown, means a stock is outperforming vs. the S&P 500 index.
The stock market continues to flash a green signal to investors. The major stock indexes hit fresh records this Fourth of July week, according to IBD’s Big Picture column.
Southern Copper Stock
Shares of the copper producer jumped 8.4% to 116.75 in the holiday-shortened Independence Day week. Southern Copper stock bounded above the 10-week moving average. The mining stock shows a 129.79 buy point from a seven-week consolidation, still 9% below the entry. The 10-week line recovery could serve as an early entry for aggressive investors.
The rebound in copper and gold prices seems to be boosting shares. Some of that may reflect the drop in the U.S. dollar and bond yields amid signs that the Federal Reserve could cut interest rates starting later this year.
Other factors playing a role include policy in Beijing. Citi analysts on July 5 predicted a near-term rebound for copper prices to $10,000 per ton. They expect incremental policy support for property and grid investments in China at a mid-July government meeting.
On a per-share basis, Southern Copper earnings continued a tw0-year slump in the first quarter of 2024.
But for the full year, management foresees strong market demand due to a resilient U.S. economy. It also predicts new copper demand tied to decarbonization efforts and artificial intelligence.
“We believe these new factors will play a significant role in supporting long-term copper demand, sustaining attractive copper prices,” Southern Copper board chair German Larrea said in an April 25 earnings release.
Analysts now expect a 41% EPS rebound in 2024 on 14% revenue growth. Both earnings and sales are seen rising further next year. Southern Copper’s earnings per share slumped 22% in 2022 and a further 8% in 2023.
Southern Copper stock earns an IBD Composite Rating of 85 and an EPS Rating of 59, both out of a best-possible 99. A 93 RS Rating means that SCCO has outperformed 93% of all stocks in IBD’s database over the past year.
Year to date, the copper stock has raced nearly 36% higher.
Agnico Eagle Mines Stock
Shares of the gold explorer and producer surged 6.9% to 69.80 on the week, also regaining the 10-week line. Agnico Eagle Mines stock displays a 71.50 buy point from a flat base, with shares just 2% below the entry. Shares flashed an early entry Thursday as they ran past the 50-day and 10-week lines.
It’s up more than 14% from an early April breakout past 61.15, MarketSurge pattern recognition shows on a weekly chart.
Agnico Eagle Mines stock owns an IBD Composite Rating of 98, EPS Rating of 97 and RS Rating of 92.
The Canadian company’s earnings rebounded in the first quarter of 2024 for a second straight quarter, on the back of acquistion-fueled sales growth.
Analysts expect 43% profit growth for the full year and a further 6% rise in 2025. That would follow single-digit earnings per share declines in 2022 and 2023 despite solid sales growth.
The world’s third largest gold producer has seen gold prices rebound. The gold price rally continued on July 5, reaching the highest level in a month, after U.S. jobs data showed a softening in the labor market, boosting hopes for a Fed rate cut in September.
Year to date, the gold mining stock has climbed 27%.
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Novo Nordisk Stock
Shares of the Wegovy maker eased 0.3% for the week, but rebounded from the 10-week line and closed above the 21-day line. Novo Nordisk stock remains in buy range from a June 4 breakout past 137.22, MarketSurge pattern recognition shows.
Novo Nordisk stock fell July 2 after President Joe Biden and Sen. Bernie Sanders slammed the drugmaker and rival Eli Lilly (LLY) for “unconscionably high” prices of weight-loss drugs. The two companies criticized their position. On July 3, the drugmakers fell as a study tied a blindness disorder to their weight-loss drugs. But they pared losses and rebounded July 5.
On a weekly chart, Novo Nordisk stock has a five-weeks-tight. Getting above the bulk of that tight trading would offer another place to buy.
Novo Nordisk stock owns an IBD Composite Rating of 96, EPS Rating of 97 and RS Rating of 94.
In the first quarter, Novo Nordisk earnings grew 27% but growth decelerated for a second consecutive quarter.
Analysts expect 25% profit growth for the full year and a further 23% rise in 2025. Sales are seen rising 25% and 21% over those respective periods.
Growth is slowing. In 2023, Novo Nordisk earnings per share boomed 54% on 30% sales growth.
Year to date, Novo Nordisk stock has ripped 38% higher.
Monday.com Stock
Shares of the Israel-based cloud software provider rose 3.4% for the week to 248.98, rallying further above the 10-week line.
After Friday, Monday.com stock has a new base with a 249 buy point next to a prior consolidation. The mini-double-bottom look suggests 239.54 is the better entry, which largely lines up with the prior base buy point of 239.22. MNDY cleared the 239.22 entry on May 24 but soon fell back, forging the new base.
Monday.com stock holds an IBD Composite Rating of 97, EPS Rating of 80 and RS Rating of 93.
Earnings per share boomed 336% in the first quarter on a 34% revenue gain. However, that marked the eighth straight quarter of sales deceleration.
Analysts forecast 26% profit growth for the full year and a 23% increase in 2025. Sales are seen rising 30% and 27% over those periods.
Growth is slowing. Monday.com posted its first annual profit in 2023 as sales jumped 41% for the year.
Year to date, MNDY stock has jumped nearly 33%.
Vistra Stock
Shares of the utility company popped 3.9% on the week, bouncing off the 50-day and 10-week lines before pulling back on Friday. Vistra stock was trying to clear above short-term highs.
The relatively new S&P 500 stock is working on a new base with a 107.24 buy point.
The utility stock has surged more than 160% from a prior flat-base breakout in November 2023. It has vaulted 230% from a cup-with-handle breakout in July 2023.
Vistra stock holds a dull IBD Composite Rating of 69 and poor EPS Rating of 13. But its RS Rating is a best-possible 99.
Earnings have been volatile for the utility play. In the latest quarter, Vistra lost 14 cents a share, its second straight quarter of net losses. Sales plunged 31%, falling for a third consecutive quarter.
Analysts anticipate 38% profit growth for the full year and a further 24% rise in 2025.
The electricity and power generation firm earnings should get a boost from the artificial intelligence trend. The AI boom is fueling power demand from the growing numbers of data centers.
Year to date, Vistra stock has skyrocketed 132%.
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