Buying Zones for 50 Stocks to Update your Watchlist
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When it comes to investing and buying stocks, there are two major approaches: buying during pullbacks and market consolidations, or opting for momentum investing.
Personally, I belong to the first group. This strategy, while appealing for its focus on fundamentals and long-term value, comes with two key challenges:
When you buy during consolidation phases, it means you buy during periods with a negative market trend, which can be unsettling
Also, you never know where the bottom is as it is impossible to predict the exact lowest point, adding an element of risk
Despite these challenges, I find this approach more compelling. By focusing on a fundamentals, I can identify its intrinsic value and seize opportunities to buy at a favorable price for long-term holding periods. This method, in my opinion, is often more rewarding than a momentum-driven approach, which involves buying stocks purely based on upward trends, regardless of their price or potential.
To navigate the uncertainty of market bottoms, I like to establish 3 buying zones for staggered entries. While it is rare to hit the absolute lowest price, having a structured plan ensures readiness for any market conditions. These prices often emerge during bear markets, and if you are interested in how to navigate such times, check out my article on what to do and avoid during bear markets.
Datasource
To define the buying zones, I use a mix between a fundamental and technical analysis. You can also do it with a good information website. You can find all the data I am using through the following link to marketscreener.com. I use this website daily, and I am confident it can be helpful to you as well. (Please note that this is an affiliate link)
Share your stock suggestions for the next article on buying zones in the comments below!
Let’s begin with an example
We will use Microsoft as an example.
Currently the stock has a 34x PE and a current price of $446.
The first buying zone is around $399. This zone has been a support in February, March, April and August 2024. It would give a PE of 30x. I have already identified this buying zone in my last article about it at the beginning of August and the stock bounced back from here.
The next buying zone is $350. This zone has been a resistance at the end of 2021 and in July 2023. It would give a PE of 27x.
The last one for me would be $315 (PE of 24x). It has been a support on August 2023 and September 2023.
So the zones are:
$399 / PE 30x
$350 / PE 27x
$315 / PE 24x
Of course, the price could always drop further or fail to decline at all. In either scenario, the investment thesis and buying zones would need to be re-evaluated.
50 stocks analyzed
In this article, we will discover the buying zones for 65 stocks. Here is the full list:
US Stocks
Adobe, Alphabet, AirBNB, Amazon, Apple, Applied Materials, AppLovin, Blackrock, Broadcom, Cadence, Costco, Fair Isaac, Fortinet, Intuit, Intuitive Surgical, KLA Corporation, Lam Research, Mastercard, Meta, Netflix, NVidia, Palo Alto Networks, Paypal, S&P Global, Salesforce, ServiceNow, Shift4 Payments, Synopsys, Tesla, Transmedics, Unitedhealth, Visa, Waste Management, Zoetis
Dutch Stocks
Adyen, ASM International, ASML, BE Semiconductor
Chinese Stocks
Alibaba
Swedish Stocks
Alfa Laval, Assa Abloy, Evolution
French Stocks
Airbus, Hermès, LVMH, Schneider Electric
Canadian Stocks
Constellation Software, Lululemon, MDA Space
Danish Stocks
Novo Nordisk
Argentina
Mercadolibre
For each stock, you will find the current price, the current PE (you may see small variations with the current ones as I wrote this article a week before publishing it). The PE is just an information and may not be a relevant metric, but I added it as a reference.
Adobe
Country: US / Ticker: ADBE
Current price: $437 / PE 25: 27.4x / PE 25: 24.0x
Buying zones:
$405 / PE 25: 25.4x / PE 26: 22.2x
$360 / PE 25: 22.5x / PE 26: 19.8x
$275 / PE 25: 17.2x / PE 26: 15.1x
After a clear overvaluation, the stock’s valuation is beginning to look interesting. $360 would be an ideal target.
If you want to know more about Adobe, here is my article about the company.
Adyen
Country: Netherlands / Ticker: ADYEN / ADYEN.AS / ADYEY
Current price: 1,512€ / PE 25: 42.6x / PE 26: 33.8x
Buying zones:
1,290€ / PE 25: 36.3x / PE 26: 28.8x
1,130€ / PE 25: 31.8x / PE 26: 25.3x
900€ / PE 25: 25.4x / PE 26: 20.1x
The short-term trend is positive for Adyen. 1,700€ will be a major resistance. Pullbacks may be interesting for further reinforcements.
Alibaba
Country: China / Ticker: BABA
Current price: $90 / PE 25: 12.7x / PE 26: 11.6x
Buying zones:
$81 / PE 25: 11.6x / PE 26: 10.6x
$72 / PE 25: 10.3x / PE 26: 9.5x
$50 / PE 25: 7.1x / PE 26: 6.6x
Alibaba was the stock of the week of the previous week, you can find news, analyst recommendations, my analysis, technical analysis and buying zones and a one-pager on the article.
Alfa Laval
Country: Sweden / Ticker: ALFA / ALFA.ST
Current price: 490SEK / PE 25: 22.6x / PE 26: 21.1x
Buying zones:
430SEK / PE 25: 19.8x / PE 26: 18.5x
390SEK / PE 25: 18.0x / PE 26: 16.8x
330SEK / PE 25: 15.2x / PE 26: 14.2x
Alphabet
Country: US / Ticker: GOOG / GOOGL
Current price: $193 / PE 25: 21.3x / PE 26: 18.6x
Buying zones:
$170 / PE 25: 18.9x / PE 26: 16.5x
$150 / PE 25: 16.7x / PE 26: 14.5x
$132 / PE 25: 14.7x / PE 26: 12.8x
If you really want to enter on Alphabet, you could initiate a small position around $190 which is a small support and the top of July 2024. If you want to know more, here is my article about Alphabet.
AirBNB
Country: US / Ticker: ABNB
Current price: $129 / PE 25: 29.1x / PE 26: 25.3x
Buying zones:
$125 / PE 25: 28.8x / PE 26: 25.0x
$114 / PE 25: 26.3x / PE 26: 22.8x
$85 / PE 25: 19.6x / PE 26: 17.0x
$85 is the all-time-low but it is really unlikely (besides a catastrophe) to see this price again. $114 is the most interesting zone for me.
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