GE Aerospace, Nuclear Play Lead 5 Stocks Near Buy Points

GE Aerospace (GE) and nuclear components supplier BWX Technologies (BWXT) lead this weekend’s watchlist of five stocks near buy points. Construction Partners (ROAD), Globus Medical (GMED) and BrightSpring Health Services (BTSG) round out the list.

Construction Partners boasts a perfect 99 IBD Composite Rating, while GE and Globus Medical each have a 98 rating. The single rating combines both fundamental and technical factors. ROAD and GMED are the No. 1-rated stocks in their respective Building-Heavy Construction and Medical-Products industry groups, according to IBD Stock Checkup.

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IBD Stock Lists, Market Take

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The S&P 500 slipped 0.4% on Friday, slipping below the 50-day moving average, a key support level. The S&P 500 finished the week just 1.4% below its all-time closing high on Jan. 27. Still, there are some signs of possible fragility below the surface.

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The 10-year Treasury yield slid below 4% to a four-month low. While potential war with Iran — now a reality — may have fueled a safety bid, that may not be the main story, as credit worries grow from AI disruption.

Some caution is advised, yet the bull market trend is intact, allowing investors to have 40% to 60% exposure. However, that’s subject to change at any time.

Be sure to read IBD’s The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

GE Aerospace Stock

GE Aerospace announced on Feb. 16 that United Airlines (UAL) had ordered 300 GEnx engines, plus additional spare engines, to power its new Boeing 787 Dreamliners. With this order, GE now has nearly 1,800 GEnx engines to deliver in the future. The company ended Q4 with a backlog of roughly $190 billion.

Morgan Stanley initiated coverage on GE stock with an overweight rating and 425 price target based on its “mission-critical” engines and growing maintenance and repair business. Analytst Kristine Liwag thinks Wall Street is still underestimating GE’s cash-flow generation potential.

Roughly 75% of revenue comes from its Commercial Engines & Services business, with the remaining 25% from Defense & Propulsion Technologies.

GE stock rose 0.4% to 342.26 on Friday. Shares cleared a 322.79 buy point from a 5-week flat base on Feb. 19. The buy zone for GE Aerospace stock runs through 338.93.

BWX Technologies Stock

BWX Technologies, the U.S. Navy’s main nuclear reactor supplier, posted 17.4% growth in earnings per share to $1.08 on Monday afternoon, way ahead of 89-cent forecasts. Revenue grew 19% to $885.8 million, $48 million ahead of estimates.

Revenue can be lumpy, and the company signaled that the first-quarter will be relatively soft, with 55% of full-year EBITDA generated in the second half of the year.

BWX’s government business saw revenue grow 8% to $2.35 billion for the year, but sales slipped 1% in Q4. Commercial unit sales surged 63% to $853 million for the year. The growth was driven by nuclear components, fuel and fuel handling, and medical sales. Commercial sales also got a lift from the $525 million acquisition of Kinectrics and its complementary portfolio of nuclear power and nuclear medicine offerings.

BTIG raised its price target to 235 from 225, keeping a buy rating, after the earnings report. The firm highlighted commercial nuclear power new business bookings of more than double its Q4 billings.

BWXT dipped 0.2% to 205.98 on the week. If BWX retakes the week’s high point of 215.81, which came on Monday, that could serve as an early entry opportunity.  MarketSurge shows a 220.57 buy point from a six-week consolidation on a weekly chart.

Construction Partners Stock

Construction Partners flattened fiscal first-quarter estimates on Feb. 5, as revenue grew 44% and adjusted EPS 88%. The backlog for the Dothan, Ala., company grew 16% to $3.09 billion.

Analysts expect 25% revenue growth for the year. That reflects the company’s outlook for organic revenue growth of 7% to 8% and an even bigger boost from acquisitions. Construction Partners completed acquisitions in Daytona Beach, Fla., and Houston in Q1. It also announced another Houston acquisition in early February, highlighting the deals in high-growth regions with robust public and private project activity.

The company works on road, highways, runways, bridges and commercial projects. Data centers are “a big part of what we do,” CFO Gregory Hoffman told analysts.

ROAD stock surged 11.2% on Feb. 5, flashing an early entry with a strong move above its 50-day moving average. Shares have since been mostly moving sideways, just below a 138.90 buy point from a 20-week cup base.

Globus Medical Stock

Globus was featured as IBD Stock Of The Day on Wednesday after the medical products firms topped preliminary results announced in early January and raised its full-year outlook.

Earnings grew 52%, the third straight quarter of accelerating growth. Revenue rose 25.7%, with a lift from the Q2 acquisition of Nevro, whose HFX spinal cord stimulation platform and other devices focus on treatment of chronic pain. Excluding Nevro, sales climbed 10.6%. The company’s 2026 outlook range implies 12% EPS growth and 9% revenue growth at the midpoints.

Globus rose 5.4% on the week to 95.46. GMED is still actionable after it flashed an early entry with a strong move clear of its 50-day line, while breaking the trendline sloping down from its Jan. 8 peak. That move really began on Monday but took another step forward on Wednesday. GMED stock hit a closing high on Thursday.

Globus has an official buy point of 101.40 from a seven-week cup base. Its weekly MarketSurge chart is flashing a blue dot, which shows that its relative strength line is at a 52-week high. The RS line is the blue line in IBD charts that tracks a stock’s progress vs. the S&P 500. A blue dot is bullish when it comes before a stock breaks out to a new high.

BrightSpring Healtyh Stock

BrightSpring Health Services was featured as IBD Stock Of The Day on Feb. 18. That came ahead of Friday’s record intraday high for the specialty drug delivery firm following Q4 earnings.

BrightSpring topped forecasts with 29% revenue growth to $3.551 billion. EPS of 33 cents grew 50% from pre-IPO earnings, according to FactSet, but trailed estimates. BrightSpring’s year-ahead outlook calls for revenue growth of 11.9% to 16.2%. Adjusted EBITDA should rise to a range of $760 million to $790 million, with a $30 million lift from acquisitions, implying growth of 23% to 28%.

William Blair analyst Jared Hasse initiated coverage on Dec. 8 with an outperform rating based on BrightSpring Health’s “unique, diversified health care platform and compelling growth outlook.”

Hasse calls Onco360 BrightSpring’s “core growth franchise,” describing it as one of the largest specialty pharmacies focused on dispensing oncology and rare-disease therapies. He says Onco360 is among the fastest-growing specialty pharmacy operators and sees that as a reflection of its strong competitive position.

BTSG rose 3.2% to 41.43 on Friday, rising as high as 44.87 intraday. BrightSpring looks actionable now from two vantage points. It cleared the 41.40 peak of a tight trading range dating back to early January. Within that tight range, BTSG etched out a four-weeks-tight pattern, according to MarketSurge, with weekly changes of no more than 1.5%. The 41.26 top of that tight formation can be used as a standard buy point.

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