Datadog, Applied Materials Lead Five Stocks Near Buy Points For The New Year

Your stocks to watch for the week ahead are Datadog, Endava, Harmony Biosciences, Applied Materials and Danaher.

Those stocks are all near buy points. AMAT stock and Danaher are on SwingTrader.

Datadog Stock

Shares of Datadog are in a consolidation with a 186.38 handle buy point. DDOG stock dipped 0.5% to 178.11 in the stock market on Friday.

Datadog was also Friday's Stock Of The Day pick. Other stocks to watch here also recently held that distinction.

The company's cloud-based services help developers and IT teams monitor computer infrastructure performance, and it has outperformed most software names recently.

Datadog stock recently broke above a downward trend line. But it hit resistance a few days later. Shares have since found support at their 50-day line.

Demand for the Datadog's products grew in 2020 as businesses, and their tech departments, tried to adapt to more remote work. More recently, they've helped some other customers deal with rising e-commerce demand and a return to sports games.

Earnings and sales growth are strong, accelerating for the past two quarters.

Datadog stock has a 91 Composite Rating and a 66 EPS Rating.

Endava Stock

Shares of Endava, up 1.8% to 167.92 on Friday, were working on a cup base with a 172.51 entry. That base could have a handle after Monday, offering a slightly lower buy point.

Of the stocks to watch here, the tech services company currently has the strongest ratings from IBD. The stock has a 98 Composite Rating. Its EPS Rating is 99.

Harmony Biosciences Stock

Harmony Biosciences stock, down 1.55% to 42.64 on Friday, is flirting with 44.49 cup-base buy point.

The company's drug Wakix has been approved to treat sudden loss of muscle tone and excessive sleepiness in narcolepsy patients. The company also believes the drug could treat other ailments — excessive sleepiness associated with Prader-Willi syndrome and a muscle-weakening disorder called myotonic dystrophy, type 1 — potentially bringing in billions in extra sales.

Harmony Biosciences has a 78 Composite Rating, the lowest composite of the stocks to watch mentioned here. Its EPS Rating is 72.

Applied Materials Stock

Applied Materials stock was off 0.4% to 157.36 on Friday. AMAT stock is back below a 159.10 buy point of a flat base, after breaking out earlier in the week. The flat base is on top of a long consolidation.

The chip equipment supplier was a recent IBD Stock Of The Day. Cowen analyst Krish Sankar recently called the stock a "top pick for 2022." Sankar said the company stands to benefit as chipmakers invest in equipment to support new factories amid an ongoing chip shortage.

AMAT stock has a 97 Composite Rating, with an EPS Rating of 91.

Danaher Stock

Danaher stock was up 0.2% to 329.01 on Friday. Shares were in a cup-with-handle base with a 331.79 buy point.

Danaher, like other names here, was also a recent Stock Of The Day. The company, whose products help with drug development and Covid testing, could see more demand as the omicron variant tears across the globe.

Like the other stocks to watch here, Danaher has strong ratings from IBD. The stock has a 96 Composite Rating. Its EPS Rating is 92.

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