Stocks to buy and watch include bowling entertainment centers operator Bowlero (BOWL). The stock hit a fresh high and broke out above a buy point even as the broad market continued to stumble.
XBowlero Bowls A Strike As Stock Breaks Out
Shares are trading inside the buy zone from a 13.19 entry after a strong-volume rise. The relative strength line has spiked sharply over the past week and hit a new high.
Bowlero climbed over 10% the past week to all-time highs, according to MarketSmith chart analysis. The Virginia-based firm originally topped the buy point on Wednesday. But then, Thursday's wave of selling brought shares lower. The stock found support at the 21-day exponential moving average and on Friday returned to a buy area, which goes to 13.84.
Bowlero is the largest 10-pin bowling center operator in the world, with around 300 centers, almost all of which are located in the U.S. While the stock maintains a Relative Strength Rating of 95, its mediocre Composite Rating of 72 has been hindered by an EPS Rating of only 70. The company had an unprofitable fiscal 2021, with losses of $3.13 a share.
But in the fiscal year ended last June, the company posted full-year EPS of 56 cents a share. This is expected to grow 14% in 2023 and another 17% in 2024.
Investors should be aware that this stock trades in a lower-than-ideal average daily dollar volume.
Stocks To Buy And Watch: Chemicals Firm Hits New High
Albemarle (ALB) also hit a new high the past week as shares temporarily rallied above the current 5% buy zone. The stock pulled back on Thursday and Friday to test support at the 21-day line. Shares are now back within the 5% buy zone from a 273.78 cup-with-handle buy point.
After the industrial chemicals supplier reported strong earnings on Aug. 3, the stock rallied and reached the buy point for the first time on Aug. 12. EPS of $3.45 a share on revenue of $1.48 billion lifted the stock. Sales were 91% higher in Q1 2022, while EPS rose 288% on a year-over-year basis.
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The post Stocks To Buy And Watch: Bowlero Forges New High Despite Stock Market Sell-Off; Chemicals Stock One To Watch appeared first on Investor's Business Daily.
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