Last year’s peak of 2,940.91 in the S&P 500 continues to act as a magnet. And with Friday’s breakout, a retest is now just around the corner. To profit from the market’s continued ascent, today we’re looking at three of the top stocks to buy right now.
Earnings season has begun, and if the positive behavior out of banks like JPMorgan Chase (NYSE:) and Bank of America (NYSE:) is a sign of things to come, buyers should continue to dominate. With this bullish backdrop, my weekend scanning revealed ample opportunities amid uptrending stocks. Some boast high-quality breakout patterns while others offer buy-the-dip setups.
The recurring theme among today’s trio is the low risk and high potential reward available. With proper execution, these could deliver the dough.
Behold, three top stocks to buy.
3 Top Stocks to Buy for the Week: Lululemon (LULU)
Lululemon (NASDAQ:) launched to a new all-time high after last month’s earnings release. With the retailer’s recent growth, today’s traders have proven willing to pay a higher price than any of their predecessors. That’s bullish and reveals just how much LULU stock has going for it right now.
The 20-day, 50-day and 200-day moving averages are all rising in support of the 2019 uptrend. The past three weeks have seen LULU in base-building mode to digest the large gains had after the earnings release. With the 20-day moving average now just about caught up, the time is at hand for LULU stock’s next breakout.
Watch for a break $173 resistance, then pull the trigger on bull trades. I like buying the June $170/$180 bull call spread for $4.45.
The long-term trend in Fiserv (NASDAQ:) has been glorious to behold. This year’s behavior isn’t half-bad either. FISV stock sits a stone’s throw from record highs, complete with rising 20-day, 50-day and 200-day moving averages.
Last month’s breakout and run to unseen heights resulted in profit-taking which has since seen a retracement to the 50-day moving average. Friday’s reversal candle suggested buyers are emerging to defend their turf. A break above Friday’s high could signal the next upswing has begun.
Fiserv is slated to report earnings on April 30, so consider bailing before then if you don’t want to brave the uncertainty.
Darden Restaurants (DRI)
March’s earnings report lit a fire under Darden Restaurants (NYSE:), delivering a breakout which ultimately resulted in a visit to its record highs. Since then, we’ve seen a garden-variety pullback occur. The profit-taking has been benign thus far with zero signs of scary distribution arising to signal institutions are abandoning ship.
We are closing in on the old resistance zone at $113, which should give traders a second chance to scoop up shares at the scene of last month’s roaring breakout. If DRI stock toes the technical analysis line, old resistance should become new support.
This morning’s weakness shows sellers still hold the upper hand. Wait for DRI to turn higher, but when it does, consider deploying bullish plays. The July $115/$125 bull call spread is a worthy candidate.
As of this writing, Tyler Craig didn’t hold a position in any of the aforementioned securities. Check out his recently released to learn how to defend your portfolio against market volatility.
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