S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

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STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.

Revive Your Businesses With Digital Marketing

What is digital marketing?
Promoting or marketing your product or services on the digital platforms, including the internet, mobile phones and display advertisements is collectively known as digital marketing. With the internet becoming an integral part of everyone’s life, the way of marketing products and services too has evolved and every brand and business is using technology to reach out to the maximum number of people. It is being used to entice potential buyers and inform the existing customer base of new arrivals.Why choose digital marketing over traditional marketing?
Following are the reasons that show digital marketing is a wise investment and effective channel that can help in the growth of business:
Cost-effective in comparison to Traditional marketing: New and small businesses having a tight budget and should opt for digital marketing for quick and effective results. They can analyze the fruitfulness of different strategies being applied and accordingly choose which to go further with.

More power to small companies: Small companies can interact with multiple numbers of customers even without having call centers across the world where they don’t even have physical branches.

Higher conversion rate: Success of business enterprises is measured in terms of percentage of conversion of incoming traffic into leads, sales or subscribers. Digital marketing programs help you to opt out from a number of options that can help you get a higher conversion rate. Some of these tools are Search Engine Optimization, email marketing and social media marketing.

Get better revenues: With higher conversion rate comes higher number of sales and ultimately better revenue that can be invested in expanding business and workforce.

Helps in building brand Reputation: It helps in interacting with people who might be interested in your product and services. If you provide your customer what you promised, they will also help you by word of mouth.

Make use of the next generation technology: The world is welcoming “internet of Things” which is a global ecosystem comprising of interconnected smart gadgets like tablets, computers, smartphones and smart-watches etc. It is going to play a crucial role in the future and a course in digital marketing in advance is going to give you an edge over others.
A course in marketing from a reputed institute not just helps you understand different facets of marketing and makes you techno-friendly, but it also helps you in understanding the minutes of business strategies.What a marketing course has to offer you?
During the course, you would come across the benefits of online marketing over traditional marketing. Valuable sessions about web hosting server, domain registration, TLD and SLD servers, Windows and Linux servers are an integral part of digital marketing course. A well-planned curriculum comprises of syllabus segregated in different modules dealing with topics like social media optimization and marketing, SEO basics, Google ads, email marketing and lots more. By the time you complete the course, you will have a clear vision and mission to implement digital marketing and make the best out of it to impart new heights to your business.

Begin an Online Business

Any entrepreneur or person looking to make more money in their life thinks about how to begin an online business. Many don’t take the time to look into it because they think it will be to complicated or take years of schooling before they can begin an online business. The reality is that anyone with a basic understanding of computers and the internet is well enough equipped to successfully start an online business and learn as they go. Let’s look at how to start your business online.Finding What’s Right For YouOne of the most important things for you to do is find a product or service that you truly believe in. Anything can be successfully marketed online so make sure to choose something you are really passionate about or see real value in for the average customer.Many sites are available for you to choose products from like ClickBank.com or cj.com. Many downloadable products from weight loss plans to how to manuals are available at these sites. You can choose from these products and market them on your site or blog to earn commissions. This is called affiliate marketing. Or you can decide to market a product of your own.An Online Business Marketing CampaignThere are many ways to market your chosen product. With so many ways to market your product it is important to begin with only a couple different techniques and add more as you progress. Methods of marketing include article, video, forum, social networking, blogging and many many more.It can become easily overwhelming to try and study and implement so many different strategies, so become an expert at 2 or 3 before beginning to try and learn all of them. You can easily waste your time learning everything about everything and not taking the time to actually use some of the methods. Don’t fall into that trap.Find Successful Online PartnersTo begin an online business takes consistent daily effort before you start seeing results. If you aren’t using some of the more successful methods out there your online business can become very frustrating.One of the best ways to make sure you’re online business is going to be successful is to find an online mentor that is already successfully marketing online. There are many businesses out there that offer not only great products and services but also great mentorship.It is great to have a mentor that is already finding success online because you know he/she can show you what they are doing to create that success. You should also find a program that offers the mentor incentive to continue working with you such as bonuses for him/her when you are successful at marketing your product.