AMD stock, General Motors (GM), Expedia (EXPE), cannabis REIT Innovative Industrial Properties (IIPR) and cybersecurity firm Fortinet (FTNT) are your stocks to watch this week.
All five stocks are in bases, closing in on breakouts. Advanced Micro Devices (AMD), Fortinet and IIPR stock are arguably already in range from early buy points.
While traditional breakouts haven’t worked as well as early entries in a choppy 2021, these stocks are not too far from the key support levels that offered aggressive entries.
These stocks are setting up as the travel industry rebounds, a global chip shortage shows signs of easing, and the U.S. cannabis industry seeks ways to get funding in the absence of broader banking services.
More broadly, the market is now in a confirmed uptrend, giving a green light for investors to step up exposure.
AMD stock is on IBD Leaderboard and SwingTrader. FTNT stock is on IBD Long-Term Leaders. IIPR stock is on the IBD 50. EXPE stock was Friday’s IBD Stock Of The Day.
AMD stock has already cleared an early entry, after moving back above its 50-day line decisively last week. Shares are still within range from that entry. AMD rose 6.7% to 112.12 in last week’s stock market trading, moving toward a double-bottom base with a 114.59 buy point.
Among the stocks to watch here, shares of the microprocessor and graphics-chip maker have the strongest ratings from IBD. AMD stock has a best-possible 99 Composite Rating. Its EPS Rating is also 99.
AMD, a recent Stock of the Day, has made gains on the release of new graphics cards for gaming PCs.
GM stock rose 0.5% to 58 on Friday but fell 1% for the week. It’s now formed a handle on its double-bottom base. That gives General Motors a 59.45 buy point.
Investors could have also bought the stock after it retook its 200-day line earlier this month.
GM stock boasts an 82 Composite Rating. The EPS Rating is 70.
GM and Ford (F) recently restarted production in some plants — a sign that the chip shortage might be easing. That shortage, driven by coronavirus-related factory shutdowns, has weighed on vehicle production and sales this year.
GM also recently touted its EV and self-driving vehicle plans.
Expedia stock was up 1.8% to 171.99 on Friday. Shares are moving closer to a 175.47 buy point on a cup-with-handle base.
Shares have a 57 Composite Rating, the weakest among the stocks to watch mentioned here. The EPS Rating of the online travel-planning company is 29.
Still, Expedia has benefited from a return to travel, after a year of pandemic-related restrictions.
In August, CEO Peter Kern said Expedia benefited from strong vacation demand in North America. Demand for vacation rentals and more conventional forms of lodging, he said, ran up against weakness in international and corporate travel.
“While that strength has continued into Q3, recent Covid variant news around the world continues to create uncertainty in the travel industry,” he said in Expedia’s earnings release.
But over the past several weeks, Covid cases have tumbled in the U.S. and around the world, with restrictions also coming down.
Innovative Industrial Properties Stock
IIPR stock fell 1.6% to 239.05 on Friday, working on a flat base with a 253.71 buy point. Investors could still buy the stock from its bounce off the 50-day line earlier in the week. Buying around 248 would also be an early entry, especially after Friday’s reversal.
Among the stocks to watch here, IIPR’s ratings are the second strongest overall. The stock has a 99 Composite Rating and a 96 EPS Rating.
IIPR is a real estate investment trust that buys up U.S. cannabis companies’ properties, like dispensaries and cultivation facilities, and leases them back. The U.S. cannabis industry — where banking access can get complicated because cannabis is still federally illegal — uses those sale-leaseback deals to access money.
Innovative Industrial Properties in August reported quarterly results that beat expectations.
Fortinet stock edged up 0.5% to 315.29 on Friday, climbing 2.6% for the week. FTNT stock was in a flat base with a 322.10 buy point. Investors could have bought the stock as it rebounded above its 50-day line on Oct. 7. It’s still actionable from the 50-day.
The relative strength line hit a record high on a weekly chart, reflecting the stock’s outperformance vs. the S&P 500. An RS line hitting a new high before the stock is especially bullish.
FTNT stock has a 98 Composite Rating. Its EPS Rating is 92.
Follow Bill Peters on Twitter at @IBD_BPeters.
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