5 Stocks To Watch Trade Near Buy Points; Three Are Data Center Plays
- JUAN CARLOS ARANCIBIA
- 08:00 AM ET 01/31/2026
GE Vernova (GEV) broke out past a buy point Friday, while Vertiv Holdings (VRT), Dycom Industries (DY), Halozyme Therapeutics (HALO) and Viking Holdings (VIK) are other stocks to watch as they trade near buy points.
Of the five stocks, three are benefiting from data center expansion. Those companies — GE Vernova, Vertiv and Dycom — grew earnings per share 35% to 63% in the most recent report.↑XNOW PLAYINGAnother Tech Earnings Wave: What To Watch As Google, Amazon, AMD Report
While GE Vernova released Q4 earnings the past week, other stocks to watch are still weeks away from reporting. Yet, some have moved in sympathy with peers’ results, and upcoming announcements could still move these stocks.
GE Vernova Clears Flat Base
GE Vernova climbed 2.7% Wednesday after the company beat fourth-quarter expectations and raised its guidance. Friday, the stock briefly climbed above the 731 buy point of a flat base but closed below it. It remained above early entries at 698.74 and 701.
A blue dot on its IBD MarketSurge chart indicates the relative strength line is making new highs along with the stock — a bullish combination.
The company saw strong sales of gas turbines and storage equipment. GE Vernova’s turbines are in high demand from data center operators hungry for any source of electricity. Orders in GE Vernova’s gas power segment surged 52% to $32.8 billion in Q4, and the company signed 24 gigawatts of new gas equipment contracts.
Cambridge, Mass.-based GE Vernova raised its 2026 revenue estimate to $44 billion-$45 billion from $41 billion-$42 billion. It also said it expects revenue of $52 billion to $56 billion by 2028.
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Sales in the company’s wind power division fell 24% to $2.4 billion amid “softness in orders over the last year” and higher offshore-wind contract losses. The Trump administration in December halted offshore wind-power projects.
GE Vernova, Thursday’s IBD Stock of the Day, has an IBD Composite Rating of 93, one of the highest in the alternative energy industry group.
The stock has a 21-day average true range (ATR) of 4.46%. The average true range, available on MarketSurge, gauges the characteristic breadth of a stock’s behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.
Vertiv Holdings Another Data Center Play
Vertiv Holdings rose above the 189.66 buy point of a double-bottom base on Wednesday and remains near the entry. The buy zone goes to 199.14.
The company provides data centers, communication networks and commercial and industrial facilities with power, cooling and infrastructure products. In November, the company announced a partnership with Caterpillar (CAT) on data-center power and cooling tools.
Vertiv will announce fourth-quarter earnings on Feb. 11 before the stock market opens. Analysts polled by FactSet expect earnings of $1.29 a share, an increase of 30.4%. Sales are seen rising 21.5% to $2.875 billion.
In its third-quarter report, the company said a strong backlog and pipeline justified raising its full-year 2025 EPS guidance from $3.80 to $4.10. Analysts expect $4.13 for the full year.
Of 30 analysts who cover the company, 22 have buy or outperform ratings. But analysts’ mood has shifted lately. Deutsche Bank and JPMorgan cut their price target in the past couple of weeks, according to FactSet and TheFly.com. But RBC Capital and Bank of America raised their targets.
Vertiv has a Composite Rating of 98 and its EPS Rating of 98 is the highest in the electrical equipment industry group. Earnings rose 77%, 49%, 42% and 63% the past four quarters. Sales climbed 26%, 24%, 35% and 29% over the same period.
The stock has a high ATR of 5.02%.
Dycom Leads Industry
Dycom stock climbed above the 366.65 buy point of a flat base on Jan. 15 but has dipped slightly below it. Watch for shares to continue holding above the 21-day exponential moving average.
A drop below the line or the 50-day moving average would set off alarm bells. The latest base is a third-stage pattern, which historically has a higher chance of failing than early-stage bases.
Dycom is one of the largest providers of contracting services to the telecommunications and utility industries in the U.S. The acceleration of fiber-to-the-home buildouts by AT&T (T) and Lumen Technologies (LUMN) has fanned the company’s growth. Higher federal funding for rural broadband infrastructure also provided a boost.
Earlier this month, Guggenheim initiated coverage of Dycom with a buy rating and a 510 price target. Analysts said Dycom is in a good spot to gain market share in the fiber optics buildout, TheFly.com reported. Its acquisition of Power Solutions — one of the largest electrical contractors serving data centers in the Mid-Atlantic region — is expanding wallet share with data centers.
However, the Power Solutions purchase was heavily funded by debt and new interest expenses that will cut into Dycom’s profit.
IBD Stock Checkup names Dycom as the No. 1 stock in the telecom infrastructure industry group. The stock has a Composite Rating of 97 and an ATR of 3.44%.
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Halozyme A Stock To Watch
Halozyme tried to break out of a double-bottom base on Jan. 7 but retreated into a price dip that acts as a handle with a buy point at 75.59. A trendline over the handle has provided an early entry around 71.50.
The company specializes in hyaluronidase, an enzyme that degrades a key component of the body’s connective tissues. This creates more space for the body to absorb medications. Companies often use hyaluronidase to convert their intravenously infused drugs into under-the-skin shots.
Halozyme on Wednesday released preliminary 2025 results and raised its 2026 guidance.
It expects 2025 revenue growth of 36% to 38%, to $1.385 billion-$1.4 billion, and revenue from royalties of $865 million-$870 million, a year-over-year increase of 51% to 52%. Its fourth-quarter report is still weeks away.
For the current year, it raised its revenue forecast to $1.71 billion-$1.81 billion, up 23% to 30%, from an earlier estimate of $1.43 billion-$1.53 billion. It expects royalty revenue to top the $1 billion mark, estimating $1.13 billion-$1.17 billion, up from previous estimates of $900 million-$940 million. It also pegged 2026 earnings at $7.75 to $8.25 per share, vs. earlier projections for $6.50 to $7.
CEO Helen Torley said the new royalty target is one year ahead of initial plans.
“By the end of 2026, we project we will have 15 partner programs in development and have signed three or more new drug delivery licensing agreements, expanding the reach and growing our opportunity through our diversified drug delivery portfolio,” Torley said.
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San Diego-based Halozyme also announced it acquired Surf Bio, a biotech that’s developing a new method to deliver antibodies and biologics to patients. Halozyme paid $300 million upfront, plus up to $100 million in additional payments contingent on product development and regulatory approvals.
Halozyme has a Composite Rating of 98. That’s one of the highest in the biotech industry group and even more noteworthy for an industry with more than 650 stocks. The stock has an ATR of 3.07%.
Viking Another Stock To Watch
Shares of Viking stock rallied 6.7% Thursday in sympathy with Royal Caribbean‘s (RCL) earnings surge.
Viking stock is near the 74.61 buy point of a flat base, although a rebound from the 50-day moving average earlier in the week provided a lower entry around 70.25. Its Accumulation/Distribution Rating of A- indicates heavy institutional buying of the cruise line stock.
The company — Tuesday’s IBD Stock of the Day — operates a fleet of more than 100 ships, with cruises over 21 rivers and five oceans.
On Jan. 16, Morgan Stanley raised the price target on Viking to 75 from 70 and kept an overweight rating. Leisure companies serving older, wealthier consumers — arguably Viking’s market — fared relatively better in 2025, TheFly.com reported. Morgan Stanley said it expects a similar performance in 2026.
Viking posted a loss in 2023 but rebounded with a solid profit in 2024. For 2025, analysts expect earnings of $2.49 a share, an increase of 35%, according to IBD MarketSurge.
The stock has a Composite Rating of 84 and an ATR of 2.81%.
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