S&P 500 index components Meta Platforms (META), GE Aerospace (GE) and Goldman Sachs (GS), along with Dick's Sporting Goods (DKS) and Spotify Technology (SPOT) are in focus this week.
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The stock market rally had a mixed end to the week, after the S&P 500 briefly topped 5,500 for the first time. However, most stocks then retreated. The Dow Jones Industrial Average edged higher, rebounding from its 50-day moving average and clearing recent highs from the past few weeks.
However, despite a mixed bag Thursday and Friday, the stock market rally appears to still be acting well with these five highlighted stocks all showing signs of strength.
Among them, Spotify stock was highlighted this week in IBD's New America. Meanwhile, Meta stock and Spotify are on SwingTrader.
S&P 500: GE Stock
Shares of GE Aerospace fell 0.5% on Friday during market trade, but advanced 5.4% on the week to 164.24. The S&P 500 stock is bouncing back above its 50-day moving average and is slightly below a 170.80 buy point in a flat base pattern, according to MarketSurge pattern recognition shows.
Aggressive investors could use the June 17 high of 167.50 as an early entry.
Year to date, the S&P 500 stock has surged 60%. It has more than doubled over the past year. On May 7, GE stock hit its best level in 15 years, then pulled back a bit.
The relative strength line has retreated during the current consolidation, but after a long uptrend. The RS line, the blue line in IBD charts, tracks GE stock's progress vs. the S&P 500.
Is GE Stock A Buy Or A Sell Right Now?
GE Aerospace — once called GE's "crown jewel" — makes jet engines and aviation systems for plane makers like Boeing (BA), as well as the military. It also runs a lucrative aftermarket business for engine repair and maintenance.
The aerospace and defense pure-play company emerged from General Electric's big breakup, after the spinouts of GE Vernova (GEV) and GE HealthCare Technologies (GEHC). GE Aerospace kept the GE ticker symbol.
GE stock has a muscular 97 Composite Rating. Shares also have a strong 97 Relative Strength Rating and a 77 EPS Rating.
S&P 500: Meta Stock
Facebook-parent Meta Platforms fell 1.9% on the week to 494.78. Meta stock now has a new lower 514.01 buy point from a cup-with-handle pattern.
The S&P 500 stock previously had a cup base with an ideal buy point of 531.49.
On Thursday, KeyBanc raised its Meta Platforms price target to 540 from 475, citing a "meaningful uptick" in ad prices.
Meanwhile, analyst consensus has earnings popping 48% in 2024 before rising a further 14% in 2025, according to FactSet.
Meta Platforms holds some of the world's most successful social media platforms, including its flagship product Facebook as well as Instagram.
The company is also looking to capitalize on the artificial intelligence boom. Chief Executive Mark Zuckerberg has said that early results from its AI focus show the company "should invest significantly more over the coming years."
In late April, Meta raised its guidance for 2024 capital expenditures by 12%, to $37.5 billion at the midpoint of its range. The company also upped the midpoint of its total expenses about 1%, to $97.5 billion.
The high end of Meta's capex guidance, $40 billion, would represent a 42% increase from 2023. Capex decreased 12.5% year over year in 2023.
The S&P 500 stock has a perfect 99 Composite Rating. Meta shares also have a 93 Relative Strength Rating. The S&P 500 component also has a robust 97 EPS Rating.
Spotify Technology Stock
Shares of Spotify stock rose 1.5% on the week to 317.74. The stock is trading just below an official 319.30 buy point as it holds its 21-day exponential moving average.
On June 4, Spotify stock broke out above its flat base buy point of 319.30. The stock climbed as high as 331.08 the next day before pulling back and dropping out of the 5% buy zone.
However, SPOT found support above its 50-day moving average line and didn't close in the 7%-to-8% stop-loss sell zone.
The Stockholm-based company is the world leader in music streaming by subscribers, with about 32% market share. Tencent Music (TME) is in second place with 14% share, followed by Apple's (AAPL) Apple Music with 13% and Amazon.com's (AMZN) Amazon Music with 11%.
Spotify earned the equivalent of $1.05 a share on sales of $3.95 billion in the March quarter. The company reports financial results in euros. In the year-earlier period, Spotify lost $1.27 a share on sales of $3.34 billion.
After cutting costs through workforce reductions and other means last year, Spotify hopes to be sustainably profitable starting this year.
Analysts predict Spotify will earn $5.06 a share this year and $7.32 in 2025, according to FactSet. Last year, Spotify lost $2.93 a share.
Spotify stock has an 89 Composite Rating out of 99. The stock's Relative Strength Rating is 97. The EPS Rating is 73 out of 99.
Dick's Sporting Goods Stock
DKS shares leapt 6% to 229.33 on the week. The retailer is now back in a buy zone after breaking out and then pulling back.
Dick's Sporting Goods stock has recently gapped above its 50-day moving average, breaking a trendline in an emerging base. DKS stock is in consolidation with an official buy point of 225.79.
DKS shares advanced 13.3% last month after falling more than 10% in April. Dick's Sporting Goods stock is up xx% in 2024, according to MarketSurge analysis.
In late May, Dick's Sporting Goods reported better-than-expected first quarter earnings and revenue while also raising its full-year outlook.
The retail chain announced that Q1 earnings came in at $3.30 per share, down about 3% compared with a year ago. Meanwhile, revenue increased more than 6% to $3.02 billion. Analysts expected first quarter EPS of $2.96 and sales totaling $2.94 billion.
Dick's Sporting Goods' comparable sales increased 5.3% in Q1 compared to a 3.6% increase a year ago. The company closed two stores in the first quarter.
The retailer said more customers are shopping at its locations, with average transactions rising too.
For 2024, Dick's Sporting Goods now expects earnings of $13.35-$13.75 per share and sales between $13.1-$13.2 billion. The retailer also predicts comparable sales growth for 2024 of 2%-3%.
The stock has a 91 Composite Rating out of a best-possible 99. DKS shares also have solid 96 Relative Strength Rating and an 89 EPS Rating.
S&P 500: Goldman Sachs Stock
The bank stock dropped 1.7% Friday but advanced 0.8% to 450.18 on the week. Goldman Sachs stock now has a flat base with an official buy point of 471.48 .
Wednesday's high of 460.41 could serve as an early entry for the S&P 500 stock.
Back in April, Goldman Sachs posted a 32% increase in earnings to $11.58 per share. Net revenue jumped 16.3% to $14.21 billion, primarily driven by gains in investment banking.
The results marked two consecutive quarters of double-digit earnings gains, although revenue growth decelerated over the last four quarters.
The company's investment banking revenue increased 32% year over year to $2.09 billion. Net interest income declined 10% to $1.6 billion.
Meanwhile, Goldman Sachs' global banking and markets revenue rose 15% to $9.73 billion. Asset and wealth management revenue jumped 18% to $3.79 billion.
Goldman Sachs allocated $318 million in provisions for credit losses during the quarter, compared to a benefit of $171 million for the same period last year. Provisions for credit losses were $577 million in Q4.
Goldman Sachs stock has a 97 Composite Rating out of a best-possible 99. The S&P 500 component also has solid 90 Relative Strength Rating and an 86 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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