Five companies, including Nvidia, Quanta Services, and DoorDash, are showing strong technical signals and are near potential buying points, according to recent market analysis. Despite a general market downturn, these stocks are maintaining firm trading patterns, drawing attention from investors focused on the artificial intelligence, infrastructure, and retail delivery sectors.
Key Takeaways
- Nvidia, Quanta Services, and Emcor are positioned to benefit from the ongoing expansion of artificial intelligence and data center infrastructure.
- DoorDash is demonstrating a path to sustained profitability in the competitive delivery market, with analysts forecasting significant earnings growth.
- Rhythm Pharmaceuticals is showing market strength following positive clinical trial results for a new drug candidate.
- These five companies are forming bullish chart patterns, such as flat or cup-with-handle bases, suggesting potential for upward price movement.
AI and Infrastructure Stocks Lead the Watchlist
Amid a volatile market, several companies tied to the artificial intelligence boom are demonstrating resilience. Nvidia, the leading designer of AI chips, continues to be a focal point for investors. Two other companies, Quanta Services and Emcor, are also gaining attention for their critical roles in building the physical infrastructure that powers AI, particularly data centers.
The demand for AI computation requires massive data centers, which in turn need specialized construction and significant electrical power. This has created a strong growth environment for companies that provide these essential services.
Nvidia Maintains Strong Market Position
Nvidia stock is currently in a flat base formation with a buy point identified at 184.48. Although the stock recently attempted a breakout and touched an all-time high, it has since settled near its 50-day moving average. This pattern is often seen by technical analysts as a period of consolidation before a potential price increase.
The company's financial performance remains robust. Over the last three quarters, Nvidia reported earnings growth between 33% and 71%, with revenue increasing by 56% to 78% in the same periods. This performance has earned it a top Composite Rating of 99.
Analyst Confidence in Nvidia
Reinforcing this positive outlook, Barclays analyst Tom O'Malley recently reiterated an overweight rating on Nvidia. He also raised his price target for the stock from 200 to 240, citing increased investment in AI data centers by major cloud computing firms as a primary growth driver.
Quanta Services Benefits from Data Center Boom
Quanta Services, a heavy-construction company, is trading approximately 5% below its 424.94 buy point and is forming what is known as a cup-without-handle base. The company's stock has already increased by about 28% this year.
The company's growth is directly linked to the construction of data centers and the modernization of the power grid. Over the past four quarters, Quanta's earnings have increased by 21% to 44%, while sales have grown between 13% and 24%.
Analysts at Jefferies recently upgraded Quanta from hold to buy and increased their price target to 469. They noted that Quanta's market is expanding across data centers, renewable energy, and transmission projects, positioning it for sustained earnings growth.
Emcor Shows Tight Trading Pattern
Emcor, which builds data center infrastructure and power generation systems, has been trading in a tight range for over a month. It is forming a flat base with a 667.64 buy point and is finding support at its 10-week moving average, a positive technical indicator.
The company recently joined the S&P 500 index and has demonstrated impressive financial results. Earnings per share (EPS) rose between 28% and 61% over the past four quarters. In a strategic move to focus on its U.S. operations, Emcor sold its United Kingdom building services business for approximately $255 million.
Growth in Delivery and Biotechnology Sectors
Beyond AI and infrastructure, companies in the retail delivery and pharmaceutical sectors are also showing promising signs. DoorDash and Rhythm Pharmaceuticals are two stocks being watched closely for their distinct growth drivers and market performance.
Understanding Market Volatility
Investors often use a metric called the Average True Range (ATR) to measure a stock's typical price volatility. A higher ATR suggests larger price swings, while a lower ATR indicates more incremental movements. Of the stocks discussed, Rhythm Pharmaceuticals has the highest ATR at 3.27%, while DoorDash has the lowest at 2.27%.
DoorDash Charts Path to Profitability
The food delivery service DoorDash is forming a cup-with-handle base with a 269.06 buy point. The stock is holding above its 50-day moving average, and its share price has risen over 55% year to date. After years of operating at a loss, DoorDash achieved profitability last year, a significant milestone for the company.
Analysts expect this trend to continue. The average earnings estimate for 2025 is $2.47 per share, a substantial increase from the 29 cents per share profit reported in 2024. Projections for 2026 anticipate profits rising to $3.94 per share.
- Innovation in Delivery: DoorDash is actively exploring new delivery methods, including drones and proprietary robots.
- Strategic Partnerships: The company has established partnerships with drone delivery firms like Wing, an Alphabet subsidiary, and Flytrex.
- Market Position: DoorDash holds the highest Composite Rating (98) out of 58 stocks in the internet retail group.
Rhythm Pharmaceuticals Gains on Trial News
Rhythm Pharmaceuticals, a biotech company, is currently testing support at its 10-week moving average. The stock previously rallied 45% from its 68.58 buy point, with a significant 37% single-day jump on July 9. This surge was driven by positive trial results for bivamelagon, a potential treatment for a rare condition called acquired hypothalamic obesity.
While Rhythm Pharma is not yet profitable, which is common for development-stage biotech firms, it has shown strong sales growth ranging from 26% to 73% in the past four quarters. Analysts are overwhelmingly bullish, with 14 out of 15 recommending the stock as a buy, citing growing expectations for FDA approval of its treatments.
