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Best Stocks To Buy And Watch Now: 5 Top Stocks For October

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Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist? Eli Lilly (LLY), Exxon Mobil (XOM), Neurocrine Biosciences (NBIX), Cardinal Health (CAH) and Arista Networks (ANET) are prime candidates.




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With inflation worries high, and the Federal Reserve tightening rates aggressively, market action has been challenging so far in 2022. The Russian invasion of Ukraine also continues to weigh on markets.

Best Stocks To Buy: The Crucial Ingredients

Remember, there are thousands of stocks trading on the NYSE and Nasdaq. But you want to find the very best stocks right now to generate massive gains.

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The CAN SLIM system offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.

IBD’s CAN SLIM Investing System has a proven track record of significantly outperforming the S&P 500. Outdoing this industry benchmark is key to generating exceptional returns over the long term.

In addition, keep an eye on supply and demand for the stock itself, focus on leading stocks in top industry groups, and aim for stocks with strong institutional support.

Once you have found a stock that fits the criteria, it is then time to turn to stock charts to plot a good entry point. You should wait for a stock to form a base, and then buy once it reaches a buy point, ideally in heavy volume. In many cases, a stock reaches a proper buy point when it breaks above the original high on the left side of the base. More information on what a base is, and how charts can be used to win big on the stock market, can be found here.

Don’t Forget The M When Buying Stocks

A key part of the CAN SLIM formula is the M, which stands for market. Most stocks, even the very best, follow the market direction. Invest when the stock market is in a confirmed uptrend and move to cash when the stock market goes into a correction.

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A stock market rally that kicked off 2022 soon fell on its face. While the market battled back amid a better than expected earnings season, the latest uptrend failed amid disappointing inflation data, which comes on the heels of Federal Reserve Chairman Jerome Powell’s hawkish Jackson Hole speech. The S&P 500, the Nasdaq and the Dow Jones Industrial Average has all sunk below their 50-day moving averages.

With the market back in a correction now is a time to avoid making any new buys. This will help prevent you getting sucked into a bear market trap. Reversals can be particularly severe at this time. Instead, now is a good time to build a watchlist of exceptional stocks such as those in the IBD 50. These names will tend to have rising relative strength lines. The stocks below are good candidates.

It is a good time to consider taking profits. In addition, stay on top of sell signals. Any stock that falls 7% or 8% from your purchase price should be jettisoned. Also beware of sharp breaks below the 50-day or 10-week moving averages.

Remember, there is still significant headline risk. Inflation remains a key issue while the Russia-Ukraine conflict is a wild card that has proved its ability to shake the market.

Things can quickly change when it comes to the stock market. Make sure you keep a close eye on the market trend page here.

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Best Stocks To Buy Or Watch

  • Eli Lilly
  • Exxon
  • Neurocrine Biosciences
  • Cardinal Health
  • Arista Networks

Now let’s look at Eli Lilly stock, Exxon stock, Neurocrine Biosciences stock, Cardinal Health stock and Arista Networks stock in more detail. An important consideration is that these stocks all boast impressive relative strength.

Eli Lilly Stock

LLY stock is just below a flat-base buy zone after previously clearing an ideal buy point of 335.43, according to MarketSmith analysis.

Shares have retaken the 50-day moving average, a bullish sign. The relative strength line has also surged to new highs.

Eli Lilly stock has been faring very well on the stock market. In fact, it is in the top 7% of stocks in terms of price performance over the past 12 months.

The diversified medical stock also boasts solid earnings. It currently holds an EPS Rating of 86 out of 99.

Analysts are particularly keen on its drugs Mounjaro and donanemab. Lilly already has approval for Mounjaro in patients with Type 2 diabetes. But the company is also testing it in patients with obesity and related cardiovascular/metabolic conditions. Lilly also is working in Alzheimer’s with donanemab.

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Mounjaro is the first in its class. It targets two hormones tied to blood sugar control. The Food and Drug Administration approved it for diabetes treatment in May.

“Mounjaro could be the biggest drug ever,” UBS analyst Colin Bristow said in a report Thursday. He also sees LLY stock as the “best way to play” upcoming data from rival Biogen (BIIB) in Alzheimer’s disease treatment.

Bristow upgraded LLY stock to a buy on Thursday and raised his price target to 363 from 335.

It is just a part of a suite of diabetes medicines sold by Eli Lilly. Mounjaro is becoming a more important portion of the group. For the week ended Sept. 16, prescriptions for Mounjaro accounted for 22% of all of Lilly’s diabetes medicines, according to SVB Securities analyst David Risinger.

However he also said sale of LLY’s most popular diabetes treatment Trulicity are continuing to grow despite very strong initial Mounjaro uptake.

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In addition, UBS’s Bristow has called Lilly’s donanemab “the highest potential late-stage Alzheimer’s asset.” Lilly spokeswoman Kristen Basu said a Phase 3 study that aims to confirm donanemab’s benefits in mid-2023.

Lilly popped last week after Biogen (BIIB) reported strong late-stage trial results for a similar Alzheimer’s drug.

Exxon Stock

Exxon Mobil stock is among the best stocks to buy or watch now. It has formed a consolidation pattern with an ideal buy point of 105.67, according to MarketSmith analysis.

It has bullishly retaken the 50-day moving average after finding support at the 200-day line. The relative strength line remains near new highs and is bending bend upwards.

Exxon stock cleared two different trendline entries last week. Investors also could use 101.66 as an early entry. Investors might want to see XOM stock pause after a sharp run, which would also let the 50-day line catch up.

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XOM stock has a very strong Composite Rating of 97. Stock market performance is bullish, with the stock rising 36% since the start of the year. Improving earnings performance gives added credibility to a bullish outlook on Exxon Mobil stock.

Oil prices surged as the West turns away from Russian supply, topping $130 a barrel. But U.S. crude futures recently plunged to nearly $80, their lowest level since January. As recession fears rise the cost of oil could come under renewed pressure.

OPEC and key allies agreed steep production cuts of 2 million barrels a day at last week’s OPEC+ meeting as they look to support crude oil prices.

Crude oil futures skyrocketed last week, lifting XOM and other oil stocks. Exxon also issued a bullish Q3 update.

Irving, Texas, based Exxon is diversified across much of the oil and gas spectrum. Operations range from exploration and production of crude oil and natural gas to refining and marketing fuels and petrochemicals. Exxon is one of the largest publicly traded companies in the energy sector.

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That diversity can reduce volatility, but natural gas and gasoline prices also have come down significantly.

Exxon Mobil earnings soared 276% to $4.14 per share in the second quarter. Sales spiked 70% to $115.7 billion. The oil major said this increase was primarily driven by a tight supply and high demand for oil, natural gas and refined products.

“Earnings and cash flow benefited from increased production, higher realizations, and tight cost control,” CEO Darren Woods said in a statement.

Exxon Mobil reports compressed markets across most of its business segments, including refined products such as gasoline, Woods said during the Q2 earnings call.

“We clearly see the tightness in supply and refining with a closure rate during the pandemic that was three times the rate of the 2008 financial crisis,” Woods said.

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Capex totaled $4.6 billion in the quarter and $9.5 billion to date in 2022. The company said capital expenditures are in line with its full-year guidance of $21 billion to $24 billion.

The firm resumed buybacks in January, announcing $10 billion at the time.

On April 26, Exxon said it hiked its recoverable resource estimate for its Stabroek Block in offshore Guyana to 11-billion oil-equivalent barrels, thanks to three new discoveries at the site. The previous estimate was for 10 billion barrels.

But Exxon, like other oil companies, is appealing to ESG investors by earmarking funds to develop new business models to address climate change. Exxon has announced $15 billion in investments in its Low Carbon Solutions business.


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

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Neurocrine Biosciences Stock

NBIX stock sits just below a flat base buy point of 109.36 after briefly breaking above the entry last week.

The relative strength line has just hit a new high. Neurocrine Biosciences stock previously rebounded from just above its 10-week line, an encouraging sign. It managed to hold above this key level after another test last week.

There are reasons for optimism. Firstly, biotech stocks are currently showing strength, with the industry group ranking fifth out of 197 groups tracked by IBD.

NBIX stock also boasts good all-around performance, which is underlined by its very strong IBD Composite Rating of 96.

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Earnings are solid, its EPS Rating coming in at 81 out of 99, while it is in the top 7% of stocks tracked in terms of price performance over the past 12 months.

Analysts expect profit growth to ramp up in 2023.

The company recently scrapped a high-profile treatment for essential tremor. Typically, a move like that would tank a biotech stock.

Instead, NBIX stock surged. It has held the bulk of those gains, even as Wall Street feels the pangs of a lower-than-expected jobs report and the continued worry of rising interest rates.

This is perhaps due to the fact it has plenty of other potential winners in the pipeline, according to analysts.

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Mizuho Securities analyst Uy Ear notes Neurocrine also is testing the same drug that failed to help essential tremor patients in patients with a form of pediatric epilepsy. He expects early test results from that effort this year. Further, Neurocrine is expected to soon ask U.S. regulators to approve Ingrezza for Huntington’s disease patients with movement complications.

Neurocrine also expects to begin studies in schizophrenia and an undisclosed disease this year. The company also could have test results for depression and seizure treatments next year.

“Looking into 2023, we see more room for optimism with top-line readouts expected across multiple mid- and late-stage programs,” Ear said in a report to clients. He kept his neutral rating on NBIX stock, but raised his price target to 98 from 95.

Wedbush analyst Laura Chico is watching a drug called crinecerfont. Neurocrine is testing it in patients with an inherited disorder of the adrenal glands that affects growth and development. Neurocrine is on track to release additional testing data in 2023, she said in her note to clients.

During the June quarter, Neurocrine’s biggest moneymaker, Ingrezza, brought in $350 million in net sales. Ingrezza treats an involuntary movement disorder called tardive dyskinesia. Sales surged by a double-digit percentage and beat expectations.

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Neurocrine also sells a Parkinson’s disease med called Ongentys and two women’s health drugs with AbbVie (ABBV).

Cardinal Health Stock

Cardinal Health has formed a new flat base with an ideal entry point of 72.38. This is a first stage pattern.

Shares flashed some early entries in the prior couple of weeks, bouncing from its 50-day/10-week line for the first time since an early August breakout. However, after some minor pauses, investors might use 70.25 as an early entry. Market conditions raise the risks of any buys.

The RS line in particular is impressive for CAH stock. It has been generally been spiking upwards since early July, and is rebounding sharply after a brief decline.

Cardinal Health has been attracting attention from institutional investors of late. In total. 55% of its stock is held by funds.

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Highly-rated holders include the DFA TA US Core Equity 2 Fund (DFTCX) and the SEI Institutional Investments Trust Dynamic Asset Allocation Fund (SDLAX).

All-around performance is strong, with its Composite Rating a healthy 90. Earnings are not ideal, but it ended a five quarter period of declining EPS in the most recent quarter.

As a company within the highly defensive wholesale drug and supply industry, CAH has made its case as a less volatile growth stock.

It has been finding support following after a heavy-volume breakout from a cup base in August. The breakout marks Cardinal’s best short-term action in years.

A weekly chart or monthly chart highlights how CAH has actually been a stubborn laggard since the start of 2018. And the monthly chart shows the stock breaking a nearly 7-year downtrend in magnificent monthly turnover in August.

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The company’s Pharmaceutical segment distributes branded and generic drugs. The Medical segment makes Cardinal Health-branded medical, surgical and laboratory products. After five straight quarters of declining earnings, adjusted profit in its latest reported quarter jumped 36%, with revenue up 11% to $47.1 billion.

It is a member of the prestigious IBD Leaderboard list of top stocks.


What To Do As Rally Attempt Falters


Arista Networks Stock

ANET stock began forming a new base in mid-August. It is shooting for a buy point of 132.97. This comes after a consolidating period stretching all the way back to 2021.

Arista Networks flashed a buy signal last week, rebounding above its 50-day and 200-day lines and crossing a downtrend line. Shares fell back below those key moving averages on Friday, but the chart isn’t broken.

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The relative strength line is at new highs. It is in the top 8% of stocks in terms of price performance over the last 12 months.

Overall performance is excellent, with the stock holding a perfect IBD Composite Rating of 99.

Earnings have been accelerating for the past three quarters, with its EPS Rating coming in at a perfect 99.

Arista’s biggest revenue growth driver has been high-end ethernet switches that speed up communications among racks of computer servers packed into data centers.

Two of the company’s biggest customers have been Microsoft (MSFT) and Facebook parent Meta Platforms (META).

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Arista reported second-quarter results on Aug. 1 that beat estimates on earnings and revenue. Arista earnings rose 59% from a year earlier to $1.08 per share, topping estimates of 92 cents.

Further, revenue grew 49% to $1.05 billion vs. forecasts for $979 million, topping the $1 billion mark for the first time.

“In Q2 2022, we achieved our first billion-dollar revenue quarter, despite the challenges of an uncertain supply chain environment,” said CEO Jayshree Ullal said in a news release.

“This record milestone further validates the customer value of Arista’s differentiated cloud networking platforms, now adopted by many of the largest cloud and enterprise customers around the world.”

In Q3 the firm is expecting revenue in a range of $1.025 billion to $1.075 billion. ANET stock analysts had predicted revenue of $996 million.

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Arista is the top stock in IBD’s Computer-Networking industry group. It ranks ahead of the likes of Digi International (DGII) and Sierra Wireless (SWIR) is third.

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Your wallet is drained by subscriptions. Wall Street thank you.

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Try to calculate the number of subscriptions you have. We’ll wait.

There’s your Amazon Prime and your Spotify — the ones you married. How about that Apple TV+ subscription you’ve been meaning to cancel since you watched Ted Lasso… last summer? Scroll through your cellphone (it’s the same as another subscription) and you might find a Calm app your doctor recommended that you haven’t actually used, or a dating app you’ve used and hated, but will likely use again. There is a Chewy subscription to feed your dog DoorDash Subscribe to Feed Yourself and sign up for Peloton to work on the food you just ate. And of course, there’s also a Wall Street Journal subscription necessary to read this article.

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Norway’s $1.3 trillion wealth fund encourages traders to bet against the market

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(Bloomberg) — Nikolai Tangen, head of Norway’s $1.3 trillion sovereign wealth fund, wants traders to bet against the market.

Most Read from Bloomberg

The world’s largest single owner of publicly traded companies, with nearly 1.3% of all listed shares, on Thursday outlined a three-year plan to limit losses that have accumulated in turbulent markets for 2022, exacerbated by soaring inflation and rising interest rates. and war in Europe. For the first time in its history, the wealth fund is looking forward to a future in which investments are a fraction of what they used to see.

This means that “excessive returns are more important than ever,” said Tangen, who has repeatedly told his countrymen to prepare for “extremely low returns.”

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Speaking in an interview Thursday, Tangen said the key to beating the benchmark would be to “push the fund to become more long-term, more ambivalent, and more active in terms of passive selection.” That is, “there are a lot of things we don’t want to own,” he said, without elaborating.

Built from the wealth of the North Sea in oil and gas, the Oslo-based fund has warned of a prolonged downturn in the markets after posting an average return of 6% over a quarter century of its existence. It lost 4.4% in the third quarter, which is equivalent to about $43 billion.

The fund has only one owner, unlike other large asset managers, is largely affiliated with the index, and invests according to a strict mandate from the Ministry of Finance. She strives to make the most of her limited field to try and beat the standard against which she is measured, something she has been able to achieve in eight of the past ten years.

“In a volatile world, you need to be more long-term and more ambivalent,” Tangen said. This is “because there will be more opportunities when you can do the opposite with everyone else.”

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He said the strategy was “playing into heightened geopolitical uncertainty” and a partial reversal of globalization, while the wealth fund released its three-year strategy. The plan sets goals such as investing in companies before they go public, voting more actively at shareholder meetings, improving cooperation between traders and portfolio managers, and exploiting periods of turmoil in real estate markets.

The fund also needs to be “more robust operationally,” Tangen said, including being prepared to counter cyberattacks. He has already said that openness and transparency are priorities to ensure that Norwegians understand why their rain fund is not growing as quickly as before.

The fund scaled back its participation in initial public offerings last year. In hindsight, he dodged a bullet, Tangen said, having bought fewer IPOs in “really frothy” markets and seeing those IPOs perform “really badly.” But that is likely to change as conditions improve.

“Selectively exploring this opportunity in the next strategy period is something we will look at,” said Equity CEO Pedro Furtado Reis. “Doing this allows us to get into the life cycle of the company earlier and hopefully as the company grows it will have a greater share of that value.”

The fund said it would consider investments in renewable energy storage and transmission in the future, which would expand the range of renewable infrastructure it would like to keep. It spent about 1.4 billion euros ($1.5 billion) on a 50% stake in a Dutch offshore wind farm in 2021, but has not added anything else to its renewable energy infrastructure portfolio.

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“It’s competitive,” Tangen said of the wind and solar projects market. “There aren’t a lot of projects out there, they’re very competitive and the returns are very low. So we just want to increase the space. Generally in the investment world, the more options you have, the better.”

The broader scope in renewables also reflects an internal effort within the fund to improve collaboration between teams and identify new investment opportunities, said Daniel Baltazar, chief equity officer.

“We may have built a few more silos than we should have,” Balthazar said. “With the advent of Nikolai, there is a much greater effort to collaborate between teams. With this collaboration between teams, we can also search in a better way across value chains.”

(Updates in detail in sixth paragraph, comments with CEO in twelfth)

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Saudi Arabia signs Huawei agreement, deepening ties with China on Xi’s visit by Reuters

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© Reuters. Chinese President Xi Jinping arrives in Riyadh, Saudi Arabia, December 7, 2022. Saudi Press Agency/Handout via Reuters

By Aziz El Yacoubi and Eduardo Baptista

RIYADH (Reuters) – Saudi Arabia and China offered deep ties with a series of strategic deals on Thursday during a visit by President Xi Jinping, including one with tech giant Huawei, whose growing incursion into the Gulf region has raised US security concerns.

King Salman signed a “comprehensive strategic partnership agreement” with Xi, which has received a warm welcome in a country that has forged new global partnerships outside the West.

Xi’s car was escorted to the king’s palace by members of the Saudi Royal Guard riding Arabian horses and carrying the Chinese and Saudi flags, and he later attended a welcome banquet.

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The Chinese leader held talks with Crown Prince Mohammed bin Salman, the de facto ruler of the oil giant, who greeted him with a warm smile. Xi ushered in a “new era” in Arab relations.

The offer stood in stark contrast to the quiet welcome given in July to US President Joe Biden, with whom relations have been strained by Saudi energy policy and the 2018 killing of Jamal Khashoggi that overshadowed the embarrassing visit.

The United States, which has warily watched China’s growing influence and its relations with Riyadh at rock bottom, said Xi’s trip is an example of Chinese attempts to exert influence around the world and will not change US policy toward the Middle East.

A memorandum was agreed with the Chinese company, Huawei Technologies, regarding cloud computing and building high-tech complexes in Saudi cities, despite the US discomfort with Gulf allies over potential security risks in using the Chinese company’s technology. Huawei has participated in building 5G networks in most of the Gulf countries despite the concerns of the United States.

Prince Mohammed, who fists instead of shaking hands with Biden in July, returned to the world stage after Khashoggi’s killing and has been defiant in the face of American anger over oil supplies and pressure from Washington to help isolate Russia.

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In a further polishing of his international credentials, Saudi Arabia and the United Arab Emirates said on Thursday that the emir and the Emirati president had led a joint mediation effort to secure the release of American basketball star Brittney Griner in a prisoner exchange deal with Russia.

In an opinion piece published in Saudi media, Xi said he was on a “pioneering journey” to “open a new era of China’s relations with the Arab world, the Arab Gulf states and Saudi Arabia.”

Xi added that China and Arab countries “will continue to raise the banner of non-interference in internal affairs.”

China’s state broadcaster CCTV said that sentiment was echoed by the crown prince, who said his country opposed any “interference in China’s internal affairs in the name of human rights”.

Xi, who is set to meet other Gulf oil producers and attend a broader meeting of Arab leaders on Friday, said China will work to make those summits “landmark events in the history of China-Arab relations,” and that Beijing regards Riyadh as “an important force in the multipolar world.” .

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Saudi Arabia and other Gulf states such as the United Arab Emirates have said that they will not pick sides among the world powers and that they are diversifying partners to serve national economic and security interests.

“reliable partner”

China, the world’s largest energy consumer, is a major trading partner of the Gulf states, and bilateral ties have expanded as the region pushes for economic diversification, raising US concerns about China’s participation in sensitive Gulf infrastructure.

The Saudi energy minister said on Wednesday that Riyadh will remain a “reliable and reliable” energy partner of Beijing and that the two countries will enhance cooperation in energy supply chains by setting up a regional hub in the kingdom for Chinese factories.

The Saudi Press Agency reported that Chinese and Saudi companies also signed 34 deals to invest in green energy, information technology, cloud services, transportation, construction and other sectors. It did not give figures, but said earlier that the two countries would conclude initial deals worth $30 billion.

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Tang Tianbo, a specialist on Middle East affairs at the China Institute of Contemporary International Relations — a think tank affiliated with the Chinese government — said the visit will lead to further expansion of energy cooperation.

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