Your stocks to watch this week include Apple stock, Chinese internet giant Tencent (TCEHY), Chipotle Mexican Grill (CMG) and life sciences companies like Danaher (DHR) and Repligen (RGEN).
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Those stocks are either setting up in bases or in buy zones. All of them are potentially actionable now.
Apple (AAPL) and Chipotle stock are on IBD Leaderboard. Danaher stock is on the IBD 50.
Apple Stock
Apple stock has formed a handle with a 138.89 buy point. Shares rose 0.5% to 131.61 in the stock market on Friday. The top of the handle is just above the high point of the cup base. For the week, AAPL stock dipped 0.5%, but rebounded from sharp losses earlier in the week to back above its 21-day exponential moving average.
An aggressive investor could buy AAPL stock off the 21-day rebound and breaking the downtrend in its handle.
Shares of the iPhone maker have an 80 Composite Rating. Its EPS Rating is 81. The relative strength line reached a high in September, and then slipped from that level. The RS line, the blue line in the charts provided, tracks a stock’s performance vs. the S&P 500 index
Apple stock last month moved into record-high territory, amid signs of solid holiday sales gains. There are signs of strong demand for its 5G iPhone 12s, signaling a new upgrade cycle. But Apple also faces antitrust scrutiny.
Chipotle Stock
Chipotle stock rose 2.5% on Friday to 1,402.44, ending the week back in buy range. The stock is above a 1358.81 entry off a small handle. Shares are also above a 1384.56 entry of a consolidation. For the week, CMG stock rose 1.1%, after initially tumbling below buy points to its 50-day line before rebounding bullishly. That late-in-the-week rebound also snapped a small downtrend that began in late December, when the shares hovered near record highs.
The stock has a Composite Rating of 80. Its EPS Rating is a weaker 49, reflecting business struggles during the coronavirus pandemic.
Wall Street has become more concerned that shares of the chain have become too expensive. But Cowen analyst Andrew Charles called Chipotle an “all-terrain vehicle” built for the year ahead, citing the strength of its digital ordering business.
Many diners have stuck with digital orders as the coronavirus pandemic keeps restaurant restrictions in place even as vaccines make their way to patients.
Analysts are betting on booming Chipotle earnings growth in 2021.
Tencent Stock
Tencent stock jumped 5.6% to 78.94 on Friday, capping a 7% weekly gain. Investors could have started a position in TCEHY stock as it reclaimed its 50-day line Friday and cleared short-term resistance. The consolidation’s official buy point is 81.45.
However, investors must be aware that Tencent, known for its messaging and payments app WeChat and for its online games, faces threats from the Chinese and U.S. governments.
Friday’s stock move came after news that the U.S. Treasury Department left Tencent and e-commerce giant Alibaba off a list that barred Americans from investing in Chinese companies. That came after Thursday reports the U.S. was mulling adding those two companies to the list. The New York Stock Exchange on Wednesday that it would delist three state-run Chinese telecom companies, after briefly reversing that decision.
Meanwhile, Beijing has put big Chinese internet platforms and payment systems, specifically Alibaba (BABA) and Tencent’s possible monopolistic behavior, on the list. So far, China has focused on probing Alibaba and its payments affiliate Alipay. Still, investors in Chinese stocks must be aware of the government risk.
Meanwhile, regulators in China are investigating Alibaba over “suspected monopolistic practices.“
Danaher Stock
Danaher stock rose 1.6% on Friday and 9.6% for the week, to 243.39. The stock is in a shallow cup base with a 248.42 buy point. Investors could have bought DHR stock as it rebounded from its 10-week line. It’s still actionable, coming in at 6.6% above the 10-week.
Danaher, which makes a variety of medical products, including Covid-19 tests, has Composite and EPS ratings of 93.
The company reports fourth-quarter earnings on Jan. 28.
Repligen Stock
Repligen, whose technology helps make manufacturing biological drugs more efficient, rose 2% to 208.36 on Friday. The stock is in a cup base with a 212.65 buy point, according to MarketSmith analysis.
Investors could have also bought RGEN stock as it rebounded off its 10-week line. It’s still within range at 7% above that key level.
Repligen has Composite and EPS ratings of 98.
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