Exploring Potential Opportunities: S&P 500 Standouts

This week, the spotlight is on five prominent S&P 500 stocks: Broadcom (AVGO), MercadoLibre (MELI), Elastic (ESTC), Datadog (DDOG), and Shift4 Payments (FOUR). Despite recent market fluctuations, these stocks are positioned around potential buy points, offering investors a chance to strategically enhance their portfolios.

Broadcom: A Semiconductor Powerhouse

Broadcom (AVGO) shares saw a 5.6% weekly gain, closing at 1,107.68. Currently, the stock forms an ascending base pattern with a 1,151.82 buy point. While around 4% below this entry, AVGO is showing actionable signs, trading close to the 21-day moving average and breaking a short trendline. Broadcom’s fiscal fourth-quarter earnings and revenue surpassed estimates, with optimistic forecasts, especially post the transformative acquisition of VMware.

Elastic: Riding the AI Wave

Elastic (ESTC) shares climbed 7.5% for the week, closing at 111.94. Presenting a flat base pattern with a 118.24 buy point, ESTC can be considered actionable based on Thursday’s high of 114.53. Despite a recent downgrade by Barclays, Elastic’s generative artificial intelligence has boosted sales, driving a surge of over 30% in stock value following better-than-expected fiscal second-quarter earnings.

MercadoLibre: The Latin American E-Commerce Dynamo

MercadoLibre (MELI) experienced a 7.8% weekly gain, closing at 1,658.58. Rebounding from the 10-week line, MELI closed just below its flat-base buy point of 1,660. Often referred to as the Amazon.com of Latin America, MercadoLibre boasts a robust payments business. With three consecutive quarters of triple-digit earnings gains and a perfect Composite Rating of 99, MELI is a standout stock.

Datadog: Cloud-Based Monitoring Excellence

Datadog (DDOG) shares surged 6% for the week, closing at 121.52. Rebounding above a 120.26 buy point, DDOG presents a compelling opportunity. The company, offering a cloud-based monitoring and analytics platform, reported stellar third-quarter earnings and revenue, propelling the stock 29% higher. Datadog’s consistent growth positions it as a noteworthy player in the cloud industry.

Shift4 Payments: Transforming the Payment Landscape

Shift4 Payments (FOUR) reached a two-year high of 78.97 before closing at 74.72, marking a 6.1% weekly gain. The stock, clearing a 76.51 handle entry, demonstrates strength in the payment acceptance and processing technology sector. With triple-digit earnings growth for the past two quarters, Shift4 Payments is expanding its footprint in the payment market, garnering attention from analysts with multiple price target hikes.

As investors navigate the market landscape, these five stocks present compelling opportunities to explore and consider for strategic additions to their portfolios.