Among the stocks worth watching closely, Dow Jones titan Microsoft, along with chip giants Broadcom and Nvidia, as well as retail leader On Holdings, are currently approaching buy zones in today’s stock market.
For comprehensive insights, investors are encouraged to watch the video available at Investors.com – titled “Stocks Fall But S&P 500 Holds Key Level; Eli Lilly, Itron, GOOGL In Focus.”
For traders seeking timely breakouts, IBD MarketSurge’s “Breaking Out Today” list serves as an invaluable resource. This list showcases MarketSurge Growth 250 stocks that are breaking through fresh buy points.
Additionally, the MarketSurge “Near Pivot” list identifies stocks that are nearing buy points within bases. Notably, Heico is on the brink of reaching a buy point of 200.64 as of Thursday.
Microsoft, a prominent component of the Dow Jones index, is currently seeking support around its 50-day moving average based on MarketSurge charts. A successful rebound would position the software giant in a new buy area. However, investors are advised to exercise patience and await a decisive rebound, especially given the heightened market risk at present. Moreover, Microsoft stock also offers an additional entry opportunity at 429.37, stemming from a three-weeks-tight formation. As of midday Thursday, Microsoft stock had dipped by 1.4%.
In recent developments, Microsoft received a price-target boost from investment bank Morgan Stanley, with analyst Keith Weiss maintaining an overweight rating on the stock and raising the price target to 520 from 465. Weiss projected that Microsoft’s earnings per share would double by fiscal 2029, attributing this growth to the company’s leadership position in generative AI.
On the chip front, Broadcom is another notable stock to watch. Currently, the chip stock is consolidating within a short consolidation with a buy point of 1,438.17. Although the price action resembles a flat base, it is slightly deeper than ideal, with a depth slightly exceeding 16%. As of Thursday, Broadcom stock had slipped by 1.2%, remaining below the 50-day line.
Following an investor event titled “Enabling AI Infrastructure” on March 20, Broadcom garnered a slew of bullish analyst reports. At the event, Broadcom announced the addition of a new customer for its artificial intelligence chip business, which specializes in application-specific integrated circuits (ASICs). Alongside custom AI processors, Broadcom also provides networking and switching chips for data centers, with a recent emphasis on artificial intelligence applications requiring high-speed and high-bandwidth capabilities.
Moving beyond the Dow Jones index, Nvidia, a leading AI giant, is constructing a flat base with a buy point of 974, while simultaneously seeking support at the 50-day line. As of Thursday, Nvidia stock had climbed by 0.6%.
Nvidia stock hit a record high of 974 on March 8 ahead of the company’s GTC conference, during which Nvidia unveiled its latest AI advancements and its next-generation graphics processing unit, named Blackwell. BofA Securities analyst Vivek Arya characterized Nvidia’s recent pullback as a “refreshing pause” in a client note, reaffirming a “top pick” buy rating on the stock with a price target of 1,100.
In the retail sector, On Holdings is striving to rebound from its 50-day moving average line, potentially creating a new buying opportunity. Investors could consider utilizing Monday’s high price of 33.66 as a buy trigger. On Thursday midday, shares of On Holdings had declined by 1.7%.
On March retail sales recorded a 0.7% overall increase, surpassing forecasts of a 0.3% rise. Excluding auto and gas, sales rose by 1%, also surpassing estimates. These rising sales signify positive momentum for consumer stocks like On Holdings, which has experienced slowing revenue growth over the last four quarters. On March 12, On Holdings experienced a significant stock tumble after reporting a major earnings miss, with a Q4 loss of 6 cents per share compared to FactSet forecasts of 500% growth to 12 cents per share.
Before making any investment decisions, it’s essential for investors to assess current stock market conditions and leverage resources such as IBD Stock Checkup to evaluate ratings based on critical fundamental and technical criteria. Additionally, readers are encouraged to stay informed by regularly reading IBD’s The Big Picture column.
For ongoing chart analysis on stocks to buy and watch, along with high-odds buy and sell alerts, investors can explore resources such as IBD MarketSurge, IBD Leaderboard, and IBD SwingTrader.
These stocks represent some of the top picks currently near new buy points, with Microsoft and Nvidia leading the charge among Dow Jones leaders and notable chip giants, while Broadcom and On Holdings offer compelling opportunities in their respective sectors.
