S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

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STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.

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What’s the Cost of Digital Marketing: Marketing Agency Vs Freelancer

At some point, most businesses engage external digital marketing expertise to provide inbound marketing, SEO, PPC, and social media services. In Dubai, that expertise comes in the form of either an agency or freelance talent. In a tough B2C and B2B environment, budgets are tight, and largess limited, so how can prospective clients come to grips with the cost of digital marketing in Dubai? Why Hiring A Digital Marketing Agency In Dubai Is Cheaper Than You Think! Up until now, establishing what the reasonable costs are for hiring a digital marketing agency in Dubai have been murky and anything but transparent. Relying on gut instinct won’t get you very far and public data on rates and fee for services remains elusive.If you are considering tapping into external digital marketing expertise, gaining a clear line of sight on the average costs being asked for monthly retainers and hourly rates for digital marketing in Dubai can be challenging and time consuming to compile. Digital Marketing Pricing Survey Insights A recent survey by Credo, a company that matches prospective clients with marketing agencies or consultants released the results of its latest survey of digital marketing pricing. The survey was distributed to 184 respondents across 19 countries and produced some interesting insights on the present trends for the cost of digital marketing. Freelance consultants consistently price based on hourly or monthly base rates and project fees. Worldwide digital consultant rates continue to be based on years of experience. Consultants with 1-3 years of experience, charge around $88, while those with 10+ years of experience charge an average of $189.Agency pricing appears all over the map. Agencies with 2 to 5 employees and 6 to 10 employees actually charged more on average than agencies with 11 to 20 employees according to the survey SEO agencies appear unsure about pricing their services with pricing being all over the shop. The survey showed an hourly range of $145 to about $181 Agencies and consultants with a strong strategy focus charge higher rates compared to those with a broader portfolio of services Monthly retainers, project fees, and hourly rates are all higher for strategy related servicesImplications For ClientsWith so much variation in rate schedules and competition from freelance consultants, the cost of hiring a digital marketing agency in Dubai may be cheaper than you may expect.Assess precisely what digital marketing services you are after, overlay that with a monthly service fee from a pool of prospective agencies, and use that as the starting point in your negotiations. Most agencies are very clear about their cost base and what utilization rates they are targeting and so consequently, understand just how far they can comfortably negotiate. Agency Versus Freelancer As you would expect, there are some key differences in pricing between freelancers and agencies:Freelancers are mostly servicing clients through a blend of hourly rates and project based fees.Agency preference for monthly-retainer contracts is not surprising, after all, they usually have more overhead to coverThe average digital marketing industry monthly retainer contract starts at $1,000 and ranges up to $5,000.The larger the agency, generally, the more services they offer under one umbrella. If you are looking for a blend of digital marketing services, hiring an agency will reduce the amount of coordination you need to do as a client. The larger the agency, the more customized solutions it usually provides, and hence, the higher the average price point per customer required to cover that specialized expertise and talent. The Best Clients Often, small and medium-sized businesses feel they are at a disadvantage in negotiating with an agency due to their lack of scale compared to larger clients. However, frequently, small, and medium-sized businesses are the best clients from an agency perspective.The reality is, digital advertising as an industry in Dubai, is still a comparatively immature market, and the majority of agencies lack the corporate expertise and infrastructure to service enterprise scaled customers.Hence small to medium businesses provide an agency with reliable bread and butter revenue streams without the complexity and high servicing costs that come with large multinational clients. So, if you are a small or medium-sized business, don’t be embarrassed to negotiate with an agency. They need clients like you, another reason why the cost of hiring a digital marketing agency in Dubai may be lower than you may expect! High Demand Agency Services Despite the profusion of digital marketing services, SEO and PPC services remain most agencies primary sources of revenue. The top five services sought by clients are: SEO PPC management Social media Content marketing Analytics and UXAnalytics and user experience design (UX) are surging in popularity as their importance to attracting prospects and retaining customers becomes clear. This recognition is reflected in their growing footprint within the portfolio of digital marketing services clients are seeking from their agencies.While this is good news for the industry as a whole, as it indicates a more disciplined and structured approach to digital advertising in the Middle East. It also points to a continued lack of recognition by business owners and marketers of the need to put in place adequate analytic capability in-house.Similarly, ensuring an engaging user experience from the launch of a digital marketing initiative would go a long way towards supporting the consumer acceptance of online marketing particularly as regional Internet users have become more experienced and have higher expectations of the online UX.Identify growth opportunities for your business today! Our free 30-minute marketing assessment can help save you money and drive your business forward. Subscribe Now For A Free 30-Minute Marketing Assessment!Conclusion If you are in the process of hiring a marketing agency, the news is good. The cost of hiring a digital marketing agency in Dubai may be lower than you anticipate and there are different pricing structures and models available.Many agencies use a combination of pricing models such as monthly retainer for standard services, milestone pricing for projects they do frequently, or hourly pricing for new or more complex work. Discuss which pricing model works best for you with your prospective agency and you may be in for a delightful surprise!