by Visa stock and Marriott International (MAR) broke out on Friday as travel demand surged ahead of the summer holiday season. Artificial intelligence plays Marvell technology (MRVL) and MongoDB (MDB) are also on the list this week, along with the fast-casual restaurant giant Chipotle Mexican Grill (CMG).
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MDB stock is on the IBD leaderboard while Chipotle is on the leaderboard watchlist. MongoDB and CMG shares are also in the IBD 50.
Marvell technology
Santa Clara, Calif.-based chipmaker Marvell soared in late May on expectations that AI will be a key growth driver.
The company's May 25 results beat estimates for the first quarter and reported adjusted earnings of 31 cents a share on sales of $1.32 billion.
MRVL stock broke out of a consolidation after Marvell grew its AI chip business to $800 million, or 15% of sales, over the next year, compared to $200 million, or 3% of sales, last year . The company also expects its AI sales to double this year and next.
MRVL gapped in gains and largely held the gap by finding support at its 21-day exponential moving average. A move above Thursday's high of 60.43 would provide an early entry after breaking a downtrend while price is still close to the 21-day moving average
Marvell needs another week to form a proper base.
Stocks have an 87 composite rating that combines various technical indicators into one easy-to-read score. Marvell's relative strength line is below the May 26 highs and has an RS rating of 93. Despite beating forecasts, the company has seen progressive earnings declines over the past two quarters, giving it an EPS rating of 57.
MongoDB
Based in New York, MongoDB provides an enterprise-class, open-source database platform and operates on a subscription-based software-as-a-service business model.
On June 2, MongoDB rose 28% after the company reported a 180% increase in quarterly profit to 56 cents a share from the year-ago period. Revenue rose 29% to $368.3 million.
And analysts expect earnings to pick up again, forecasting a 92% increase to $1.56 per share in fiscal 2024 and 34% growth in fiscal 2025.
Tigress Financial on Wednesday raised its price target on MDB shares to $490 from $365, while maintaining a Buy rating on its shares. The company determined that increasing integration of AI tools and capabilities should significantly increase MongoDB's customer penetration, revenue growth, and enterprise adoption.
According to IBD Stock Checkup, MongoDB leads the Computer Software Database Group. MDB stock is on the IBD 50 List and Leaderboard List.
MongoDB stock broke a three-week tight pattern after posting a large surge following June 2 earnings. Shares surpassed the 398.89 buy point for the week. MongoDB's buy zone extends to 418.83.
MDB stock has a perfect composite rating of 99 and a strong EPS rating of 83. MongoDB's relative strength line is at a 52-week high and has an RS rating of 97.
Marriott International
Hotel stocks are trying to join the recent recovery in cruise lines and airlines as travel demand for summer vacations picks up.
As of April, 53% of Americans and 81% of leisure travelers were planning trips in the next six months, the US Travel Association found June 2. And 26% of Americans plan to increase vacation travel spending in the next three months, compared with 19% in the first quarter.
Meanwhile, the hotel industry got off to a strong start this year. In the first quarter of 2023, U.S. hotels exceeded pre-pandemic (Q1 2019) revenue per available room by 13%, PricewaterhouseCoopers reported in May.
Marriott International (MAR) is benefiting from this, posting an average earnings increase of 79.25% on an average revenue increase of 43% over the last four quarters.
MAR stock broke out on Friday after just breaching the 183.27 buy point for its flat base. The current buy zone, which extends 5% beyond the buy point, extends to 192.43.
According to the IBD Stock Checkup, Marriott ranks 2nd in the leisure lodging group
Marriott stock has a composite rating of 92, an EPS rating of 78 and an RS rating of 85.
Visa stock
Payment processing giant Dow Jones Visas (V) was Thursday's IBD stock of the day. Visa, which makes money from credit and debit transaction fees and cross-border payments, is benefiting from strong consumer spending in the US and international travel.
According to Visa, cross-border payments grew 17% year over year in May, compared to 5% growth in the U.S. The company posted average earnings growth of 22.3% and revenue growth of 15.3% over the past four quarters.
On Wednesday, Visa announced it had acquired Brazilian payments infrastructure startup Pismo for $1 billion in cash.
Visa stock broke out of its own flat base on Friday after surpassing its buy point of 235.57. V shares managed a sharp rise above its 50-day moving average on Thursday, offering an early entry.
rival MasterCard (MA) is also actionable on a similar chart. Shares also surpassed their flat base buy point of 392.20 on Friday.
Visa stock has a Composite Rating and EPS Rating of 93 and an RS Rating of 79.
The market is racing to highs, but watch out; Tesla deliveries due
Chipotle Mexican Grill
Based in Newport Beach, California Chipotle Mexican Grill (CMG) is a member of the IBD 50 list and on the Leaderboard watch list. According to IBD Stock Checkup, CMG stock also leads the retail-restaurants group.
Chipotle's earnings growth has accelerated over the past four quarters, posting an 84% increase to $10.50 per share in the first quarter of 2023. The company also saw compound quarterly revenue growth of 15% during the period.
CMG stock rallied off the 21-day and 10-week moving averages, offering early entry opportunities before closing just below the official buy point of 2,139.88 on Friday.
Chipotle stock has a perfect composite rating of 99 and an EPS rating of 99. CMG's relative strength line is below the early May highs and has an RS rating of 93.
You can follow Harrison Miller on Twitter for more stock news and updates @IBD_Harrison
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