Mobileye Global (MBLY) is breaking out past its first buy point after its Oct. 26 debut, amid newfound stock market strength, and is this week’s IPO Stock Of The Week.
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IPO Stock To Buy And Watch: Mobileye
Israel-based Mobileye develops and manufactures advanced driver-assistance systems and autonomous-driving technologies. Its state-of-the-art hardware is embedded in more than 117 million vehicles, according to Mobileye’s IPO prospectus.
Parent and Dow Jones stock Intel (INTC) spun off Mobileye at less than one-third of its original value. The chipmaker raised $861 million while underwriters valued MBLY stock at about $17 billion, both above expectations, the Wall Street Journal reported.
Mobileye’s valuation stands in sharp contrast with 2021, when it was initially valued at about $50 billion. And that was cut to $30 billion earlier this year.
For the six-month period ended July 2, Mobileye reported revenue of $854 million, up 21% year over year. However, it also reported a net loss of $67 million.
IPO Stock Leader’s IBD Ratings
Mobileye has a modest 46 Earnings Per Share Rating out of a best-possible 99, according to IBD Stock Checkup. The lack of a long-term earnings track record negatively impacts this rating, which is common in many newly-public companies.
IBD Stock Checkup also shows that MBLY stock has a weak 60 IBD Composite Rating due to lackluster fundamentals and a nonexistent trading history.
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Mobileye Stock Forms First Base
MBLY stock finished just below a 29.96 buy point in an IPO base, according to IBD MarketSmith chart analysis, amid Friday’s 6.6% advance. Shares briefly topped the buy point before closing just beneath it. If the stock mounts another attempt, the 5% chase zone will go up to 31.46.
For now, the relative strength line is just off its post-IPO highs. Due to the lack of trading history, the RS line isn’t as useful right now. But keep an eye on this technical indicator over the coming days and weeks.
It should hit a new high on the breakout day to confirm the IPO stock as a market leader. This line measures the stock’s price performance vs. the broad 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/ipo-stock-of-the-week-new-issue-mobileye-approaches-first-buy-point/?src=A00220&yptr=yahoo