IPO Stock Of The Week Hamilton Insurance (HG) is closing in on a new buy point as it attempts to find support at a critical benchmark. The IPO stock is one of the best names to watch on Investor's Business Daily's IPO Leaders screen.
Bermuda-based Hamilton Insurance offers property and casualty reinsurance and specialty and medical insurance. Its specialty lines include higher-risk events such as cyberattacks, kidnappings and space missions. It also offers protection for fine art, bullion and coins, and classic cars.
↑ X NOW PLAYING Nasdaq Holds Support After Fed Minutes: SPOT, SMTC, DTM In FocusOn Nov. 6, Hamilton reported adjusted earnings of 74 cents a share on sales of $512.8 million for the September-ended quarter. Profit jumped 85% vs. the year-ago period, while revenue grew 29%, according to IBD MarketSurge. In the previous two quarters, EPS rose 194% and 264% while revenue grew 104% and 65%.
For 2024, Wall Street expects the company's earnings to grow 61% before falling 3% in 2025, per IBD MarketSurge.
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Hamilton went public in November 2023 at 15 per share. In mid-April, Hamilton stock tumbled to an all-time low. Following a choppy uptrend since then, shares rallied as much as 66% to their all-time high on Sept. 25.
Now, the IPO stock is finding support at its 50-day moving average line, closing in on a cup-with-handle entry at 19.49. Meanwhile, an earlier entry can be found around 19 by using a trendline connecting the highs within the handle over the recent trading sessions.
A weakness is the stock's lagging relative strength line. It's been languishing near the base's lows even as the stock built the right side of its base. That's a sign of big stock market underperformance over the last four months and is a cause for concern. Look for the line to move higher if the IPO stock is able to stage a breakout attempt.
A positive signal is that the latest base formation is a first-stage base. First-stage bases are more likely to net bigger gains than later-stage patterns. That makes Hamilton one of the best stocks to buy and watch in the stock market today.
The IBD Stock Checkup shows that Hamilton stock has a 93 out of best-possible 99 IBD Composite Rating.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on the Dow Jones Industrial Average and the stock market today.
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