Top Stocks To Buy And Watch Include This Financial Stock And India-Based Travel Firm

Top growth stocks to buy and watch this week on IBD’s Sector Leaders screen include a player in financial stocks, Axos Financial (AX), and India-based MakeMyTrip (MMYT).

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A handful of stocks came off the screen this week, which isn’t surprising given the way investors have tanked tech plays. Nvidia (NVDA), which had been on the list for months, fell off this week after Wednesday’s 6.6% drop. The stock is now down more than 7% on a weekly basis.

At this time, the rotation seems to be favoring other areas of the market, including regional banks, health care firms, energy and financial stocks.

Financial Stocks To Watch Amid Rotation

Among them, recent IBD 50 Stock’s To Watch pick Axos Financial is a top name to watch as the stock became extended this week from a buy point. Shares are up nearly 13% on a weekly basis. The stock broke out from a cup-with-handle buy point of 58.58 on July 10. The breakout was followed by a surge of buying, which led the stock to rise seven days in a row before pausing to digest gains.

Shares are sitting slightly below the 20% to 25% profit zone. Axos hosts an impressive relative strength line, which has sprouted higher over the past week and is holding near highs.

Las Vegas-based Axos is a holding firm for consumer and business banking provider Axos Bank. The company also owns Axos Clearing and Axos Invest, which provide securities clearance services for broker dealers and registered investment advisors.

A small player among financial stocks, Axos reported fiscal third-quarter earnings on April 30. Sales increased 27% to $294.8 million, while earnings jumped 44% to $1.94 per share. Over the past four quarters, year-over-year growth fluctuated, but remained relatively high, with sales growth ranging between 18% and 55%. Meanwhile, earnings growth has ranged between 15% and 44%.

Axos is set to announce fiscal fourth-quarter earnings on July 30, after the market closes. According to MarketSurge, analysts expect earnings of $1.80 a share on sales of $297 million.

Travel Stock MakeMyTrip

MakeMyTrip has been a powerful gainer in 2024, with an excellent 92% year-to-date increase. The stock is also up more than 200% from a year ago.

MakeMyTrip is a leading online travel agency in India, helping customers book hotels, flights, buses and other services. The Gurugram-based company saw a powerful recovery from the Covid-19 pandemic, which has since powered the stock to new highs. Leisure and business travel demand have recovered beyond pre-pandemic levels in India, according to Chief Executive Rajesh Magow.

MakeMyTrip saw annual revenue increase 32% year over year to $782.5 million. Meanwhile, the company earned $1.74 per share in fiscal 2024.

Shares are currently hovering below an 89.83 cup buy point. The stock broke out from this level on July 9 but have since pulled back. Despite triggering the 7%-to-8% sell rule, the buy point is still in play. Shares are trading just 2% below the entry, according to IBD’s MarketSurge.

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