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Dow Jones Giant UnitedHealth breaks out, leading 5 stocks to watch

Dow Jones Stock UnitedHealth Group (A H), AbbVie (ABBV) and medical shock wave (SWAV) are the top stocks to watch this week, either breaking out or settling near buy points.




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EV stock Li-Auto (LI) and dollar tree (LTRD) also make the cut.

The UNH stock tops the list. The health insurance giant, a IBD Ranking Stockreported strong earnings on Friday and that lifted several other insurers.

Keep in mind that the uptrend of the market remains under pressure. But now is a good time to create watchlists.

Each of this week’s top stocks to watch and research has a rising relative strength line. Additionally, each has a IBD Composite Rating of 94 or better, out of 99. These characteristics make them ideal stocks for the watchlist.


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Stock market action: watch the RS line

On a weekly chart from MarketSmith, the RS line for UNH stock and ABBV stock hit new bullish highs this week while in the basics or breakout, indicated by a blue circle at the end. of their RS lines.

The RS line for SWAV stock is also at a new high. Li Auto and AbbVie are close.

A rising RS line, shown in blue in these charts, means a stock is outperforming the S&P 500.

The relative strength line is a quick way to spot winners in any market, whether it’s up or down.

The Strength relative to the new list of highest actions highlights quality names with strong RS lines. MarketSmith, IBD’s stock research platform, has a stock picker with RS lines at new highs.

UNH Action

UnitedHealth jumped 5.4% on Friday stock market trading at 529.75. This erased a buy point of 518.80 handles from a double bottom cup or base.

Earlier in the week, UNH stock pulled back from that buy point but rebounded from its 50-day line on Thursday.

Shares surged on Friday as UnitedHealth’s revenue easily topped views. Competing health insurers centene (CNC) and humane (HUM) also moved back above the buy points on Friday.

UNH stock has an IBD relative strength rating of 94 out of 99. This means that it has outperformed 94% of all stocks in the IBD database over the past 12 months. It is also supported by a solid EPS Ranking out of 88 out of 99.

AbbVie Share

AbbVie shares rose 2.1% on Friday to 153.62. ABBV stock ended with a small weekly gain after testing its 50-day line on Thursday.

AbbVie stock formed a double bottom basis with a buy point of 156.99. Stocks formed a handle with a slightly too low midpoint to be correct, but this is another sign of resistance just below 157.

AbbVie cut its 2022 earnings outlook in April after suffering an unexpected hit in the first quarter. But its blockbuster portfolio includes the immunological drugs Humira and Rinvoq, as well as the cancer drug Imbruvica and a migraine treatment called Ubrelvy. It loses Humira exclusivity next year.

ABBV stock has an RS rating of 96 and an EPS score of 90. It has increased earnings by an average of 13% over the past three years. It has a three-year EPS growth rate of 18%.

Shockwave Stock

Shares of Shockwave Medical jumped 5.2% on Friday to 209.90, gaining 3.4% for the week.

SWAV stock broke an early entry on the trendline at 208.28, which is a penny above the July 8 high. It was also a starter for a handful not quite.

Friday’s strong price gain, however, came on light volume.

Shockwave, based in Santa Clara, Calif., develops products to help transform treatments for calcified cardiovascular disease. For example, its lithotripsy tool uses a series of electrical pulses to “crack” hardened calcium in blood vessels.

The SWAV stock has an RS rating of 93 and an EPS score of 76.

It’s a young company ready for its first full year of profitability, but it’s been in the black for three quarters. But Shockwave Medical grew its sales 194% last quarter and 135% over the past three years.

Action LI

Shares of Li Auto gained 0.7% on Friday but fell 1.2% to 38.45 on low volume for the week.

LI stock offers early entry from Wednesday’s bounce off the 21-day moving average. China’s electric vehicle stock is working on further consolidation after more than doubling from early May to late June.

Chinese company Li Auto makes the Li One and the soon-to-be-launched L9, premium electric SUVs. Both models use “range extenders”, gasoline engines used to recharge electric vehicle batteries while driving.

The startup has been growing electric vehicle sales at a steady, challenging pace You’re here (TSLA) as well as local electric vehicle giants.

LI stock carries an RS rating of 98 and an EPS rating of 76. Like Shockwave, it’s a young company with a few quarterbacks in the black. It is expected to see its first full year of profit in 2023. Li Auto increased sales by 175% last quarter and 591% over the past three years.

Dollar tree stock

Dollar Tree shares slid 0.4% on Friday, but gained 0.4% to 168.08 for the week.

On July 7, DLTR stock passed a buy point of 166.45 handle cups. It is in the buy range, which goes just above 174.

Dollar Tree has raised prices for dollar items by a quarter to $1.25, a dramatic change that should boost profits. The IBD 50 Superior Growth Stock continues to outperform as inflation-pressed consumers aggressively seek bargains.

Dollar Tree has an RS rating of 98 and an EPS rating of 83. Its three-year EPS growth rate of 10% is poor. But DLTR stock is posting two quarters of earnings acceleration, capped at a 48% gain in the last quarter.

For other great stock ideas, check out IBD’s exclusive watchlists, like the INN 50 and the IBD Big Cap 20.

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