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3 Earnings Stocks to Buy While They Climb Above Everything Else

It may be time to continue selling in May, but not for these all-star stocks to buy on recent earnings success

earnings stocks to buy - 3 Earnings Stocks to Buy While They Climb Above Everything Else

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A simple pullback in the market may prove more complex than many investors may have anticipated. But for three large-cap stocks in particular, strong and well-received quarterly reports, and less questionable larger price patterns, have placed them among the key earnings stocks to buy today.

Things haven’t been so simple for most stocks and it has been an action-packed couple of days in the market. On Thursday, the S&P 500 made a broad-based bullish reversal after suffering a 7% decline over the past three sessions. This grabbed many investor’s attention. But with Friday’s failure to follow-through with the bullishness, and an inability for it to move above the 62% retracement level, many wonder if this was as good as it could get for the bulls. Thankfully, not every stock on the S&P has suffered.

There are no guarantees as to what comes next. But amid geopolitical mudslinging between the U.S. and China, Federal Reserve talk and today’s “new normal,” earnings have also played a role in moving the markets higher and lower. Three large-cap stocks in particular come to mind as examples of this movement:

  • Cisco Systems (NASDAQ:CSCO)
  • Regeneron (NASDAQ:REGN)
  • Microsoft (NASDAQ:MSFT)

Let’s take a closer look at these three earnings stocks to buy. Each has grown stronger thanks to well-received earnings reports and bullish price charts that continue to point towards higher ground.

Earnings Stocks to Buy: Cisco Systems (CSCO)

Earnings Stocks to Buy: Cisco Systems (CSCO)
Source: Charts by TradingView

Alongside cheap fundamentals, business for Cisco is looking up. The company just released earnings results Wednesday evening and offered surprise results that were stronger than expected. The quarterly confessional also importantly delivered mostly upbeat guidance that didn’t go unnoticed by Wall Street. CSCO stock finished up more than 4.50% in Thursday’s market-bucking performance.

Technically, Cisco is also ready to deliver for tomorrow’s investors. Following a larger and slightly deeper bearish cycle than the broader market experienced, CSCO stock formed a trustworthy bullish hammer set inside layers of durable longer-term Fibonacci support.

With April confirming the reversal candlestick, shares more than 5% above the original signal price and favorable stochastics setup backing a purchase, CSCO stock is undoubtedly one of the standout “earnings stocks” to buy now.

Regeneron (REGN)

Regeneron (REGN)
Source: Charts by TradingView

The next earnings stock to buy that has my attention is biotech giant and novel coronavirus play Regeneron. Last week, the outfit reported stronger-than-forecast results and offered bullish news of its plans for a drug study related to the Covid-19 pandemic.

Investors were impressed by what Regeneron had to offer and sent REGN stock rallying by just over 6%. But if you think that’s as good as it gets, look again.

After leading the broader market to all-time highs into 2015, Regeneron went through a fairly painful and elongated bear market that endured for four years. But this past year’s out-performance has established a clean end to that phase. It has also opened the door for an equally bullish cycle in REGN stock to emerge.

Currently, shares of Regeneron have confirmed a weekly handle breakout within a larger irregular monthly chart double bottom (“W” base). With the smaller consolidation set high inside the larger pattern’s base and situated around the mid-pivot, there are multiple reasons to view REGN stock favorably. And notwithstanding a riskier stochastics setup, Regeneron looks well-positioned to continue leading or even surpassing the broader market in 2020 and beyond.

Microsoft (MSFT)

Microsoft (MSFT)
Source: Charts by TradingView

Microsoft — the world’s largest company — got a bit bigger on the heels of its solid quarterly results. Sure, some might argue that its slower sales growth is a concern. However, you’d be fighting the fact that MSFT stock is still backed by overall strong business trends, as well as burly tendencies on the Microsoft price chart.

Technically, Microsoft’s correction in 2020 has gone on to form a slightly aggressive “V-shaped” cup on the weekly chart. The good news is that the pattern has demonstrated consistent relative strength. The fact is, MSFT stock bottomed off durable layers of support well above where the broader market found its own corrective low. Furthermore, the steep rally in Microsoft has enjoyed equal bullish determination.

Shares of Microsoft have vaulted above and successfully tested the base’s 62% retracement level. This compares favorably to the S&P 500. Thus far, the broader market’s rally high has been stymied by the same Fibonacci level. There’s more too that bodes well for this earnings stock to buy.

After this week’s minor setback, MSFT stock has pulled back from its earnings-driven handle breakout. Shares are now slightly beneath the consolidation’s pivot high of $180.40 by a couple percent. In my estimation, this offers investors a solid-looking “second chance” entry if shares can find their footing over the next couple sessions without compromising the handle’s integrity.

The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. 


Article printed from InvestorPlace Media, https://investorplace.com/2020/05/3-earnings-stocks-to-buy-while-they-climb/.

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