NVIDIA[ticker symb=NVDA] and JPMorgan Chase (JPM) top this weekend's watch list of five stocks near buy points entering a crucial stretch for the S&P 500. Along with AI chip leader NVDA and banking giant JPM, the list includes the enterprise data storage company Pure storage (PSTG), supplier of work supplies and uniforms. Ribbons (CTAS) and home builder Pulte Group (P.H.M.).
x
Nvidia is part of the IBD Leaderboard elite stock portfolio. The flagship IBD 50 The list of leading growth stocks includes NVDA and CTAS. Cintas is also on the IBD watch list Long-term leaders list of stocks with a track record that makes them actionable in the event of constructive setbacks. Swing Trader opened a position in JPM last week, joining Nvidia stock.
Next week's inflation data, including the April Consumer Price Index due out on Wednesday, will go a long way toward determining whether the latest uptrend has strength. Producer price index data due out Tuesday morning will update price trends for several categories that directly feed into the Federal Reserve's primary inflation rate, the core PCE price index, including the most important: health care services.
A moderation in inflation data after a strong start to the year is likely necessary to keep the latest bullish trend intact. Nvidia's earnings for its fiscal first quarter through April may be equally critical. Nvidia's blockbuster first-quarter report last May provided the additional boost that made the rise of AI stocks galactic.
Nvidia Stock
Nvdia will report first quarter results on May 22. Analysts expect earnings per share to soar more than 400% to $5.91 per share, according to the FactSet consensus. Revenue is expected to soar to $24.448 billion, up 240% from a year ago and 10.6% up from $22.1 billion in the fourth quarter.
Analysts have continued to raise the bar for Nvidia following the March 18 launch of its Blackwell platform for accelerated computing, which the company says can run AI models in large languages โโat up to 25 times lower cost and power consumption than his predecessor.
On Friday, HSBC raised the price target on its NVDA shares by 300 to 1,350, maintaining a buy rating. HSBC forecasts fiscal 2026 revenue to potentially reach $196 billion.
Nvidia shares rose 1.3% to 898.78 on Friday stock market action. The stock has been consolidating since March 8 and has an official price of 974. point of purchaseaccording to a Market increase analysis. However, Nvidia could have a cup-with-handle 922.20 buy point after one more session.
JPMorgan Stock
JPMorgan Chase shares fell on April 12 in first-quarter earnings, with analysts highlighting an outlook for full-year net interest income of $90 billion, about $2 billion below The expectations. The prospects of Fed rate cuts play a role. Chief Financial Officer Jeremy Barnum noted on the first-quarter earnings call that JPM has "$900 billion in deposits paying virtually zero."
The result: A slower shift toward rate cuts may lead clients to move more funds to take advantage of higher market interest rates.
Following the Federal Reserve's somewhat dovish outlook on May 1, at least relative to expectations, bank stocks have rebounded. JPM, which had lagged behind other big banks, has been playing catch-up in recent weeks.
On Wednesday, JPM rose 2% off support on its 50 day moving averageshowing a early entry on a trendline break from its March 28 high. JPM has an official buy point of 200.94 as of six weeks out. flat base.
JPM Relative strength line, The blue line on IBD charts that tracks a stock's progress against the S&P 500 has risen to a new multi-year high. This can be a bullish signal when it precedes a breakout to new highs.
Pure storage stock
Pure Storage will report fiscal first-quarter results on May 29. Fourth-quarter results, which showed earnings per share fell 6% to 50 cents while sales fell 3% to $789.8 million, reflected a shift toward a subscription business model. The new model charges customers based on the amount of storage they use, rather than reserving revenue for hardware and services in advance.
Analysts expect revenue growth to be positive going forward. In the first quarter, Pure Storage's earnings share is expected to rise 163% to 21 cents per share, while revenue grows 16% to $681 million.
PSTG's strategy is to consolidate data storage using a single operational and management environment. The alternative of a "fragmented data storage environment" could make it difficult for companies to train and operate artificial intelligence models, CEO Charles Giancarlo said on fourth-quarter earnings conference calls.
On March 15, Citi initiated coverage on PSTG stock with a Buy rating and price target of 65. The firm cited PSTG's participation in the fast-growing all-flash storage segment, recent achievements related to AI and cost advantages.
Pure Storage shares rose 0.55% to 54.41 on Friday, rising just 1% below a 55.09 buy point from a double bottom baseaccording to MarketSurge.
PSTG shares rose 25% to 52.65 in Q4 results and eventually peaked at 58.46 the following week.
Storage provider nutanix (NTNX) entered a buy zone from a double bottom base on Thursday, while NetApp (NTAP) is a hair below the buy point.
Stock Ribbons
Cintas reported fiscal third-quarter results on March 27 that showed sales rose 10% to $2.41 billion, including organic revenue growth of 7.7%. Earnings growth accelerated for the second consecutive quarter, rising 22% to $3.84 per share.
Gross margin as a percentage of revenue increased to 49.4% from 47.2% a year earlier as continued efficiency efforts paid off.
Cintas is seeing strong double-digit percentage growth in its fire and first responders business, with plenty of runway, RBC Capital said in a research note following its third-quarter report. RBC raised its price target from 675 to 725, maintaining an Outperform rating.
Last week, CTAS continued to move away from its 50-day average that showed an early entry on May 3, when the stock broke above its level. 21-day exponential average. CTAS rose 0.6% to 700.27 on Friday, putting it within 1% of a flat base buy point of 704.84.
Cintas announced a 4-for-1 stock split on May 2 that will take effect in September.
Pulte Group Stock
On April 23, PulteGroup reported first-quarter earnings per share growth of 32% to $3.10, while sales grew 10% to $3.949 billion. This followed a 10% drop in earnings per share in the fourth quarter and a 15% drop in sales, hurt by rising mortgage rates.
Following the results, Raymond James analyst Buck Home raised his price target on PHM shares to 135 from 120, maintaining an Outperform rating. He said the results show that large public housing builders can sustain "higher for longer" interest rates.
In the earnings statement, CEO Ryan Marshall highlighted "powerful incentive programs we can offer" to improve affordability for first-time, emerging and active adult homebuyers. He also cited favorable demand conditions, helped by "a structural shortage of several million homes."
PulteGroup shares rose 0.6% to 117.68 on Friday, finishing about 3% below the 120.74 buy point for mug with handle. Its RS line is near its highest level since 2006.
Be sure to read IBD The panorama column after each trading day to get the latest on the prevailing trend in the stock market and what it means for your trading decisions.
YOU MIGHT ALSO LIKE:
Join IBD Live every morning to get stock tips before the open
How to make money with stocks in 3 easy steps
AI News: Trends in Artificial Intelligence and Top AI Stocks to Watch
These are the 5 best stocks to buy and watch now
Futures: Five Stocks Near Buy Points; Expired inflation data
