Several stocks, including Novo Nordisk, Eli Lilly, Booking Holdings, Arthur J. Gallagher, and TJX Cos., have all experienced pullbacks to their 50-day moving averages during the ongoing market correction. Despite the market downturn, the stocks’ relative strength lines have remained near their highs, signaling potential buying opportunities if there is a strong bounce from these levels. Novo Nordisk and Eli Lilly have seen significant growth due to their weight-loss drugs, while Booking, Arthur J. Gallagher, and TJX are all members of the S&P 500. Each of these stocks is also featured on various investor lists, such as IBD Leaderboard, IBD 50, IBD Long-Term Leaders, and IBD Big Cap 20.
Novo Nordisk has experienced accelerated earnings growth for the past four quarters, with revenue gains increasing over the past three quarters. The stock recently pulled back to its 50-day moving average after reaching a peak on September 11. If Novo Nordisk can make a solid move above the 21-day line and break a short downtrend, it could present a potential entry point.
Eli Lilly’s earnings surged in Q2, ending two consecutive quarters of declines, and the stock experienced a significant increase following positive news about cardiovascular risk from Novo Nordisk. However, shares have retreated to the 50-day line, and investors should look for a bounce above a downward-sloping trendline as a potential entry opportunity.
Booking Holdings has seen impressive earnings growth in recent quarters and is currently forming a flat-base pattern with a buy point. The stock has found support at the 50-day moving average in recent sessions, and a strong bounce could provide an aggressive entry opportunity.
Arthur J. Gallagher, an insurance broker, has experienced three consecutive quarters of accelerating revenue growth. The stock has made a solid advance from a cup-with-handle base and recently pulled back to just above the 50-day and 10-week lines. A bounce from these levels could present an early entry opportunity. However, it’s worth noting that AJG stock has had several declines in above-average volume in recent times.
Lastly, TJX Cos., an off-price apparel and home goods retailer, saw a rise in earnings and revenue in its fiscal Q2, ending a string of declines. The stock broke out of a cup-with-handle base earlier in the year but has since pulled back to the 50-day moving average. A bounce above the recent high could offer an early entry opportunity.