The S&P 500 finally bagged a new closing high on Tuesday, eclipsing the heights reached back in October and fully erasing the unpleasantness of late last year. A massive 180-degree policy shift by the Federal Reserve is to blame, as policymakers went from strict hawkishness (more rate hikes and qualitative tightening) to easy dovishness (with the futures market pricing in rate cuts now).
Stocks, of course, are loving this. Niggling concerns like tepid earnings growth, a lack of a trade deal with China and increasing tensions with Iran are being ignored.
With the S&P likely to extend its run higher now, here are six S&P 500 stocks that are ready for breakouts of their own:
American Express (AXP)
American Express (NYSE:AXP) shares look ready to break free of triple-top resistance near the $114-a-share level, setting up an end to a two-year-long consolidation range. The stock is already up nearly 20% so far this year but valuations are still reasonable, trading at a forward price-to-earnings multiple of just 12.7x.
The company will next report results on July 18 before the bell. Analysts are looking for earnings of $2.05 per share on revenues of $10.8 billion. When the company last reported on April 18, earnings of $2.01 beat estimates by 4 cents on a 6.6% rise in revenues.
D.R. Horton (DHI)
Shares of homebuilder D.R. Horton (NYSE:DHI) are threatening to rise up and over two-year-old multi-top resistance near $46, setting up a run at the late 2017/early 2018 highs near $52. Such a move would be worth a gain of roughly 13% from here. Valuations look attractive, with DHI stock trading at just a 10.6x forward P/E multiple as investors await the start of the summer home-buying season.
The company will next report results on April 25 before the bell. Analysts are looking for earnings of 88 cents per share on revenues of $4.04 billion. When the company last reported on Jan. 25, earnings of 76 cents per share missed estimates by a penny on a 5.6% rise in revenues.
Harris Corporation (HRS)
Shares of Harris Corporation (NYSE:HRS), maker of radio communication equipment, are sneaking up on the prior high near $170 set back in October. A breakout here would end a solid two-year consolidation range bounded by triple-top resistance. Shares are already up more than 24% so far this year. The company is in the midst of a merger with L3 Technologies (NYSE:LLL)
The company will next report results on May 1 before the bell. Analysts are looking for earnings of $2.04 per share on revenues of $1.7 billion. When the company last reported on Jan. 29, earnings of $1.96 per share beat estimates by 4 cents on an 8.5% rise in revenues.
Jacobs Engineering Group (JEC)
Shares of Jacobs Engineering Group (NYSE:JEC), a technical and construction services provider, are challenging the prior high near $82 set back in November. A breakout would continue a pattern of higher highs and higher lows that started in early 2016 and has seen shares gain nearly 140%. Valuations look attractive, despite the 37% posted so far this year, with shares trading at a 13.8x forward P/E multiple.
The company will next report results on May 7 before the bell. Analysts are looking for earnings of $1.22 per share on revenues of $4.1 billion. When the company last reported on Feb. 6, earnings of $1.14 per share beat estimates by 9 cents on a 72.9% rise in revenues.
TJX Companies (TJX)
Shares of TJX Companies (NYSE:TJX) companies are moving up to challenge triple-top resistance set late last year near $56, capping a near 34% rise so far this year. Analysts at Telsey Advisory Group recently raised their price target on the stock as they believe the discount retailer continues to win over consumers with its value proposition and consistent merchandising performance.
The company will next report results on May 29 before the bell. Analysts are looking for earnings of 55 cents per share on revenues of $9.2 billion. When the company last reported on Feb. 27, earnings of 59 cents per share missed estimates by 9 cents on a 1.5% rise in revenues.
Stanley Black & Decker (SWK)
Shares of tool and small appliance maker Stanley Black & Decker (NYSE:SWK) are up nearly 2% today as they bear down on the prior high set in September. The stock is already up more than 23% so far this year, but still trades at a reasonable forward P/E multiple of 15.8x. Shares were recently upgraded by analysts at Longbow Research.
When the company last reported on April 24, earnings of $1.42 beat estimates by 31 cents on a 3.9% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
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