New York-based database software company MongoDB (MDB) is among the stocks to watch this week, as it approaches a buy point. MongoDB has seen significant growth in 2023, driven by triple-digit earnings growth and the anticipation that the company will benefit from the enterprise adoption of artificial intelligence (AI). MongoDB’s collaboration with Amazon (AMZN) has also boosted its stock. In November, Amazon announced plans to integrate MongoDB’s Atlas Vector Search database with Amazon Bedrock, allowing customers to utilize generative AI tools and develop AI applications through AWS. This partnership has further enhanced MongoDB’s position in the market.
However, MongoDB experienced a slight setback after its December earnings report, as the growth of its Atlas software sales fell short of analyst expectations. Despite this, the stock has shown positive momentum recently. On Friday, MDB stock jumped by 6.6% to $436.01, clearing a $426.51 handle buy point. Shares have bounced off the 50-day moving average and the 21-day line, indicating resilience and potential upward movement.
Globant, a Luxembourg-based provider of information technology data and services, is another stock to watch near a buy point. The company has experienced slight growth in earnings in the past two quarters, with analysts expecting an acceleration in the near future. Mizuho recently initiated coverage of Globant with a buy rating and a $283 price target, citing strong organic growth and top-line execution as key factors driving the company’s success.
Chip design and manufacturing company Synopsys (SNPS) is also worth keeping an eye on, as it has rebounded after a dip in its stock price due to Ansys (ANSS) takeover reports. The formal announcement of the $35 billion deal has boosted Synopsys’ stock. Although the acquisition is not expected to close until 2025, it is projected to significantly increase Synopsys’ total addressable market by 50% to $28 billion. Analysts forecast a 39% increase in adjusted earnings for Q1 and a 20.9% increase in revenue.
In the education sector, China-based New Oriental Education (EDU) is approaching a buy point. The company’s stock more than doubled in 2023, driven by strong earnings growth. New Oriental Education recently reported a 190% increase in adjusted earnings for Q2, exceeding Wall Street expectations. The company’s positive guidance for Q3 suggests a robust tutoring business environment, with favorable supply-demand dynamics and stable policies.
Finally, homebuilder Lennar (LEN) is demonstrating strong performance. The company surprised investors with better-than-expected Q4 earnings and revenue, leading to a rally in its stock price. Despite slightly falling short of analyst predictions for Q1 guidance, Lennar’s shares have continued to climb as interest rates remain steady. The U.S. is facing a housing shortage, which is expected to take over a decade to close even with accelerated new home construction.
In summary, investors should keep an eye on MongoDB, Globant, Synopsys, New Oriental Education, and Lennar as these stocks show potential for growth and are approaching buy points.
