IPO Stock Of The Week and hot AI stock Mobileye (MBLY) is building the right side of a cup base, offering a new buy point after a 66% rally since October. Mobileye stock is one of the best IPO stocks to buy and watch as two potentially big events approach.
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The Israeli company is already the dominant supplier of camera-based technologies used in automotive driver assistance systems. But Mobileye aims to be a big player in the autonomous-vehicle market even though broad deployment of driverless cars remains years away.
The Mobileye driver assistance features found on many of today’s new vehicles include forward collision warning, automatic emergency braking, lane departure warning and adaptive cruise control.
In the latest quarter, Mobileye earnings surged 125% to 27 cents per share on revenue of $565 million. Sales jumped 59% year over year. The company will report Q1 results Thursday before the market opens. Analysts expect earnings of 12 cents a share, and sales of $456.4 million, according to FactSet.
The company’s lockup on shares issued at the Oct. 26 IPO expires Monday, according to a filing. That leaves insiders and major shareholders free to trade their shares.
MBLY stock boasts a near-perfect 98 IBD Composite Rating, making it a leading AI stock to watch. This ranking blends key fundamental and technical metrics to help investors easily find top stocks.
AI Stock Shows New Buy Point
AI stock leader Mobileye is building a cup base with a 48.21 buy point, according to IBD MarketSmith chart analysis. With the stock about 7% away from the latest buy point, keep an eye out for a potential handle to offer a lower entry.
Bullishly, the stock’s relative strength line is holding up well during the base-building process, which is a sign of stock market outperformance. Remember, the RS line should hit a new high on the breakout day, or shortly thereafter.
With outstanding fundamentals and shares approaching a new buy point, Mobileye is one of the top AI stocks to buy and watch in today’s stock market.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the stock market.
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Source: https://www.investors.com/stock-lists/ipo-analysis/ai-stock-mobileye-eyes-latest-buy-point-after-66-rally/?src=A00220&yptr=yahoo