Amazon Forms, Robinhood Makes Bullish Move: Five Stocks Near Buy Points

Amazon.com (AMZN) lists five stocks near buy points, along with Robinhood, Ryan Specialty, Texas Roadhouse (TXRH) and MasterCard (MA).

With the market in an uptrend, IBD currently recommends 80% to 100% market exposure for investments. The S&P 500 and Dow Jones Industrial Average are right at record highs, while the Nasdaq is above 18,100, not far from its peak.

This week's stocks to keep an eye on include: Ryan specialty (RYAN) and Robinhood (HOOD) are both on the IBD Big Cap 20 list.

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Amazon stock

Amazon shares are trending back toward their mid-July record highs ahead of third-quarter earnings release in late October. The Magnificent Seven member and the e-commerce giant are expected to benefit from the upcoming holiday season. Amazon is now fighting against it Microsoft (MSFT) is set to become the leading cloud platform for artificial intelligence via Amazon Web Services.

Analysts expect Amazon to report a 10% increase in sales in its upcoming report after second-quarter sales fell short of forecasts and the Dow Jones company issued lower-than-expected guidance for third-quarter sales and operating income has given.

AMZN stock is moving toward a 201.20 buy point on the daily chart on the right side of a 12-week consolidation. With shares declining slightly over the past week, Amazon is in control of the weekly chart with a 195.37 buy point.

Amazon stock rebounded above its 200-day and 50-day moving averages in early September. Shares have been above that level ever since.

Amazon stock is up nearly 24% in 2024.

Texas Roadhouse stock

Texas Roadhouse is trading just below a buy zone, which corresponds to a flat base. TXRH stock broke out above the 177.72 buy point last week and closed above the entry point on Thursday before sliding on Friday.

The 5% buy zone extends to 186.60.

TXRH is holding above its key moving averages after rising above its 50-day line again on September 19.

Texas Roadhouse has outperformed 43% so far this year.

A number of restaurant stocks are performing well, as is Texas Roadhouse, among them cava (CAVA), Wing stop (WINGS) and Shake Shack (SHACK).

Guggenheim on Wednesday raised its price target on TXRH stock from 190 to 195 and maintained a Buy rating on the stock based on higher earnings estimates at the start of the third quarter, The Fly reported. Texas Roadhouse's profits accelerated over the past three quarters, rising 47% in its July 25 report.

Is Amazon stock a buy as the tech giant's shares near their July highs?

Ryan Special Stocks

Wholesale broker and managing underwriter Ryan Specialty Holdings leads the insurance brokers group, according to IBD Stock Checkup. The Chicago-based insurer completed the acquisition of Ethos Specialty Insurance's property and casualty insurance business from Ascot Group on September 16 for an undisclosed amount.

Ryan Specialty beat second-quarter expectations on Aug. 1 and raised its 2024 revenue growth forecast to a range of 13% to 14%.

According to The Fly, BMO upgraded Ryan Specialty to Outperform on Tuesday, pointing to strong EBITDA (earnings before interest, taxes, depreciation and amortization) growth. The company increased its EBITDA estimates by more than 6% based on a combination of higher profit margins and rising acquisition expectations. Ryan's purchases of higher-margin companies and “healthy” double-digit organic growth appear to give the company a “clear runway” to continue margin expansions in the coming quarters. BMO raised its price target on RYAN stock from 65 to 75.

RYAN stock moved higher with a 69.03 buy point on the right side of the flat cup base, hitting its all-time high. Shares rebounded sharply from their 50-day moving average on Tuesday, which could have been an opportunity for an early entry.

But RYAN stock fell the rest of the week, suggesting a new course could be on the way in a few more sessions.

The handle appears to be forming with a buy point of 68.47, but it still takes a few days to form.

RYAN stock is up 53% in 2024.

Robinhood stock

Robinhood stock is expanding from the top of the official buy zone from the cup with handle buy point at 21.54. But a recent break resulted in June 24th. to an alternative grip. Friday's 6.5% rise to 23.89 on higher volume provided an early entry.

Robinhood shares are up more than 87% this year.

Meanwhile, Robinhood and London-based fintech firm Revolut are exploring the possibility of launching stablecoins, Bloomberg reported on Thursday. Stablecoins are cryptocurrencies designed to maintain a specific price over a specific period of time and the value is tied to a reference value. Many stablecoins are designed to stay at $1. Digital asset firm Tether's USDT token currently accounts for more than two-thirds of the $170 billion stablecoin market.

Citi on Friday raised its price target on Robinhood shares from 19 to 23 and maintained a neutral rating.

More broadly, Robinhood is a crypto-friendly free trading app at a time when brokers are doing well and cryptocurrencies are on the rise again.

MasterCard

Mastercard stock is trading at the bottom of a cup buy zone, above a 490 buy point following a breakout on Sept. 12. Investors could also use the September 18 all-time high of 501.80 as an entry point.

MA stock is finding support at its 21-day exponential moving average. The break in the last few weeks allows the 50-day line to catch up a bit.

Mastercard shares rose nearly 16% in 2024.

JPMorgan said on Wednesday that Mastercard, Fiserv (FI) and FIS (FIS) is likely to benefit after the Justice Department slapped its Dow Jones rival visa (V) with an antitrust lawsuit on Tuesday. The regulator alleges that Visa has illegally monopolized the U.S. debit card market since 2012 by using incentive payments to keep competition out of the market and penalizing merchants with higher fees for routing transactions. The DOJ also accused Visa of harming customers by passing on card fees in the form of higher prices for goods and services.

JPMorgan noted that a resolution “will take several years.”

Citi said Tuesday that it now favors Mastercard over Visa because of the lawsuit.

For more stock news and updates, you can follow Harrison Miller on X/Twitter @IBD_Harrison

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