Category Archives: stocks

Several industry groups in IBD’s database have been outperforming in recent weeks. Here’s a look at some of top performers over the past four weeks. The Computer Software-Gaming group ranks in the bottom half of IBD’s 197 industry group rankings, but it’s been the top performer in the past four weeks, up about 10%. China-based NetEase ( NTES ) has been in rally mode as it works on the right side of a cup-shaped base. With a three-year annualized earnings growth rate of 26% and sales growth rate of 44%, the company is no stranger to strong growth, thanks to a booming Internet population in China. Headline flow has been busy around NetEase recently. This week, it inked a deal with Microsoft to distribute Microsoft’s hugely popular “Minecraft” video game in China. It’s also making a virtual reality game for DayDream, Google’s new VR platform. Meanwhile, group peer Electronic Arts ( EA ) is holding gains smartly after a bullish gap-up May 11, fueled by strong earnings. Results have been uneven in recent quarters, but in the latest quarter, earnings per share rose 28% from the year-earlier period. Sales rose 10% to $1.3 billion. Soon after its earnings report, Electronic Arts laid out a plan to add $1 billion in incremental revenue within the next three to five years. It sees future growth coming from action games, shooter games, e-sports and international expansion. After a bullish move during the week ended May 13, EA’s weekly chart shows a new handle entry at 77.25. Meanwhile, IBD’s Insurance-Brokers group and Retail-Internet are up close to 7% each. Among brokers, Brown & Brown ( BRO ) is moving sideways and trading tightly near its 10-week moving average. It’s working on a new flat base with a 36.13 buy point. Arthur J. Gallagher ( AJG ) has risen to the top of a long consolidation. Headed into this week, it showed 15 weekly price gains in the past 16 weeks. Another liquid name in the group, U.K.-based Willis Towers Watson ( WLTW ), is near highs and still in buy range from a 124.66 cup-with-handle entry. In the Retail-Internet group, China-based Alibaba ( BABA ) is getting its house in order as it vies for a breakout over an 81.88 buy point. The stock outperformed Tuesday, rising nearly 3% to 81.12. Group peer Amazon ( AMZN ) has proven itself an institutional-quality name and is acting well after a recent breakout. It’s extended now, but watch for a three-weeks-tight pattern by the end of the week. The pattern is a sign of strength and occurs when the stock closes within 1.5% of the prior week’s close. A breakout from a three-weeks-tight pattern is best used to add to a current position, although it can be used to start a small position. Finally, stocks in the recreational-vehicle group, from RV makers to component makers, continue to show relative strength. The group is up around 6% over the past four weeks. Group leader Thor Industries ( THO ) is firming up at its 10-week moving average as it tries to clear a long consolidation. A comprehensive overview of the group appeared in the latest IBD Weekly weekend edition.