American International Group (AIG) and Tenet Healthcare (THC) are among this week’s top stocks to watch, along with Williams Cos. (WMB), Southern Copper (SCCO) and Morgan Stanley (MS).
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Tenet stock and the other leaders to watch are showing relative price strength as the stock market heads south into a correction. Several on the list are near buy points. However, in the current environment investors should focus on building watchlists of resilient names, those most likely to act as possible leaders in the next market rally.
In addition, SCCO stock earned a spot on the IBD 50 list.
All five stocks have strong or improving relative strength lines. And AIG and Tenet stock have RS lines making new highs. A rising RS line means that a stock is outperforming the S&P 500 index. It is the blue line in the charts shown.
Just because a stock is holding relatively well so far doesn’t mean it will continue to do so.
IBD Live: A New Tool For Daily Stock Market Analysis
Stock Market Correction: Watch The RS Line
The relative strength line is a quick way to spot comparative winners in any market — up or down.
The Relative Strength At New High stocks list is a great place to look for quality names with strong RS lines. IBD’s stock research platform MarketSmith has a screening tool that identifies stocks with RS lines making new highs.
In addition, the best growth stocks have an IBD Composite Rating of 90 or better, out of a best-possible 99.
All the stocks to watch this week meet that bar. SCCO stock leads with a perfect Composite Rating of 99. It’s followed by AIG stock with a 98, Williams with a 97, Morgan Stanley with an 89, and Tenet stock with an 85. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score.
AIG Stock
The insurance giant fell 7.4% to 57.32 last week, backing away from the top of a cup-shaped base. Despite the drop, AIG stock is holding above the 50-day line. It now has a handle on its cup base, giving a 62.35 buy point.
The RS line for AIG stock made a new high before pulling back just a bit, according to MarketSmith chart analysis.
The life and property insurance provider shows a superior IBD Relative Strength Rating of 92. That means it has outperformed 92% of all stocks over the past 12 months. AIG also shows an EPS Rating of 92.
In the first three quarters of 2021, AIG earnings growth ranged between 20% and 855%, as it rebounded from the pandemic. The insurer’s 2020 earnings almost halved due to Covid-19 pressures.
In all of 2021, Wall Street expects AIG earnings to grow 88%, and a further 13% in 2022, according to FactSet.
Tenet Healthcare Stock
THC stock dropped 6.3% to 75.97 last week, falling further below an 83.79 entry. Tenet stock undercut the 50-day line on Friday, but is holding in a 10-week consolidation.
The RS line for THC…
Read More: Tenet Healthcare, AIG Leads 5 Resilient Stocks In Market Correction