S&P 500 Stocks To Buy And Watch In Today’s Market

It’s no news that the market has had a choppy first half of the year, with only a few industries really standing out from the crowd. Here, we highlight five leading S&P 500 stocks to buy and watch that have held up.

X

S&P 500 Stocks To Buy: Big Bank Scoops Up Deposits

JPMorgan Chase (JPM) is in a flat base and is nearing the 143.37 buy point. The base started on May 1, when the stock got a 2.1% boost after JPMorgan Chase rescued First Republic Bank.

Shares quickly reversed down and traded in a volatile fashion until they got another catalyst on June 2, with the Senate’s passing of the debt-ceiling bill and strong jobs numbers.

The big bank rocketed 7.6% in heavy volume after reporting better-than-expected Q1 earnings and record revenue on April 14.

The move sent shares back above the 50-day moving average, after trading below the line since the banking crisis broke out in early March.

JPMorgan reported that new bank deposits increased by about $50 billion following the March bank failures.

The banking giant posted much-improved earnings per share growth of 37%, up from 17% and 3% in the prior two quarters. EPS declined in three quarters prior.

Q1 revenue grew 69%, up from 55% and 31% over the year-ago quarters. Those gains also followed several quarters of flat to declining revenue.

The company raised its full-year net interest income guidance to around $81 billion, from $73 billion.

Analysts estimate 20% annual EPS growth this year, with a 2% decline next year.

JPMorgan is the largest U.S. bank. JPM is ranked first out of 22 stocks in the money-center bank group. The bank pays a 2.8% dividend yield to shareholders.

Homebuilder Stock Benefits From Housing Shortage

PulteGroup (PHM) is above the 5% buy zone reaching to 63.93, after climbing past the 60.89 buy point of a cup base.

Share price exceeds 20% from the buy point, marking a level where investors may want to trim profits.

Shares are back above the 21-day exponential moving average, after a brief stint below it in late May. PHM has gained over 60% so far this year.

Homebuilder stocks have benefited from the long-term housing shortage and the improving new-home sales numbers.

Pulte stock popped 1.7% in huge volume after the homebuilder reported better-than-expected Q1 earnings and sales on April 25, fueling the steep ascent that the stock was already in.

First-quarter earnings per share grew 28%, easing from 45% and 48% gains in the prior two quarters. Sales over the same period grew 14%, from 19% and 13% in the trailing quarters.

Pulte holds the No. 4 spot out of 23 stocks in the homebuilding group, which is ranked eighth out of 197 IBD industry groups.

Travel Stock Chillin’ In A Range

Booking Holdings (BKNG) came out of a long cup-with-handle base with a 2,537.00 buy point. Shares have traded around the buy zone without making much progress since March.

Shares jumped 2.4% on Thursday to retake the 50-day and 21-day lines. It tested support at those lines the next trading.

BKNG got a lift after reporting better-than-expected Q1 adjusted EPS and sales on May 4. The Fortune 500 company posted 197% EPS growth and 40% sales growth over the prior year’s quarter.

The stock has gained around 31% this year, through Friday’s close.

Booking’s platforms allow customers in over 220 countries and territories to book hotels, homes, apartments and unique places to stay.

Brands include Booking.com, Priceline, Agoda, Rentalcars.com, Kayak and OpenTable.

Wells Fargo initiated coverage with an underweight rating and a price target of 2,257.00 on the travel stock.

BKNG holds the No. 1 spot out of 19 stocks in the travel booking group, which is ranked 30th.

Leading Pharmaceutical Stock Nears A Buy Point

Vertex Pharmaceuticals (VRTX) is building the right side of a cup base with a 354.46 buy point.

Vertex Pharmaceuticals works on treatments for cystic fibrosis, sickle cell disease, muscular dystrophy, kidney disease and type 1 diabetes.

VRTX ranks fourth out of a whopping 791 stocks in the biotech industry group, which is a high-ranking 12th.

The stock rose after better-than-expected Q1 EPS and sales were announced on May 1.

The biotech stock got a lift on news that two Phase 3 trials met primary endpoints on its sickle cell disease treatment it has with Crispr Therapeutics (CRSP).

H.C. Wainwright reiterated a buy rating and maintained its 380 price target on VRTX shares on Monday, boosting shares 1.9%.

Vertex reiterated full-year 2023 revenue guidance of $9.55 billion to $9.7 billion, primarily from its cystic fibrosis treatment Trikafta, at the top end of analyst estimates.

Analysts revised estimates down to a 7% EPS drop in 2023 and then see net holding steady in 2024.

S&P 500 Stocks To Buy And Watch: Chipotle Sees 35% Earnings Growth

IBD 50 stock Chipotle Mexican Grill (CMG) is extended from a 1,724.71 buy point of a cup base. Shares are near the 20% profit-taking zone.

Shares formed a three-weeks tight pattern with a 2139.88 buy point as a new opportunity.

The restaurant stock gapped up 12.9% in heavy volume on April 26, following the company’s better-than-expected Q1 EPS and revenue numbers.

Shares of the burrito restaurant chain have gained 47% this year through Friday’s close.

Chipotle operates over 3,100 restaurants in the U.S., Canada, U.K., France and Germany. CMG holds the top spot out of 54 stocks in IBD’s restaurants industry group. The group ranks No. 21 out of the 197 IBD groups.

Quarterly EPS growth accelerated to 84% in Q1, up from 49% and 35% in the prior two quarters, a positive sign. Analysts raised projections to a hefty 35% annualized EPS growth in 2023 and 21% in 2024.

First-quarter sales growth improved to 17% from 11% and 14%.

Mutual funds own 60% of shares, with 2,058 owning the S&P stock in March, a dip from 2,098 in December.

These S&P 500 stocks to buy and watch are worth a deep look.

Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.

YOU MIGHT ALSO LIKE:

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest

What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It

IBD Live: Learn And Analyze Growth Stocks With The Pros

Looking For The Next Big Stock Market Winners? Start With These 3 Steps

Want More IBD Insights? Subscribe To Our Investing Podcast