S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
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This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
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South Korean doctors hold massive anti-government rally over medical school recruitment plan
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan

Watch the buy range for Li Auto, MongoDB, Novo Nordisk

Illustration with RSI Relative Strength Index on red background

Key Points

  • As the S&P 500 outpaces Russell 2000, large caps Li Auto, MongoDB, and Novo Nordisk show price strength relative to the broad market. 
  • Investors can watch for these standout stocks' potential buy points and early entry opportunities.
  • Relative strength serves as a visual tool for gauging stock price performance.
  • 5 stocks we like better than iShares Russell 2000 ETF

With the November rally in the SPDR S&P 500 ETF Trust NYSEARCA: SPY, a number of large-cap stocks are in buy range. Among those names are three large companies that are not S&P 500 components: Li Auto Inc. NASDAQ: LI, MongoDB NASDAQ: MDB and Novo Nordisk A/S NYSE: NVO.

In 2023, large caps have outperformed small caps and mid caps, with the S&P 500 outperforming the Russell 2000 small-cap index, tracked by the iShares Russell 2000 ETF NYSEARCA: IWM by a wide margin. 

When tracking stocks showing outperformance, relative strength becomes an important technical indicator. Relative strength gauges a stock's performance against its peers or market indexes. It's helpful in showing a stock's resilience during market fluctuations and allows investors to identify outperformers. 

Relative strength gauges price momentum

When you see a stock with exceptional relative strength, that suggests robust momentum and the potential for even more gains. The Relative Strength Index, an often-used technical indicator, is an easy way to gauge the speed and the magnitude of a stock's price movements. 

For example, you can see the relative strength index on the Li Auto chart to get a visual representation of the stock's price performance. Its RSI stands at 47.26 as of the close on November 24. That number indicates that the stock is neither overbought nor oversold.


The MongoDB chart and the Novo Nordisk chart also indicate these stocks' upside momentum relative to the market. But you can also use them to determine potential buy points.  

Li Auto

The Chinese EV maker has been forming a cup-shaped pattern since August, below a high of $47.33. Li and fellow Chinese company XPeng Inc. NYSE: XPEV are price leaders among automotive stocks.

The company has a stellar record of revenue and earnings acceleration. MarketBeat's Li Auto analyst forecasts show a consensus view of "buy" with a price target of $70.42, for a healthy upside of 70.64%. 

As you can see, analysts believe the stock can not only break out of its current base but rally far beyond it. Currently, the most conservative buy point for Li Auto is that prior high of $47.33, but a trend line connecting a series of recent lows suggests an earlier buy point at $42.50. 

Li Auto has posted five weeks in a row of upside trade, with heavier-than-normal volume in two of those weeks.  

MongoDB

Part of the red-hot database sub-industry within tech, MongoDB's fellow top large-cap performers include Splunk Inc. NASDAQ: SPLK and S&P component Oracle Corp. NYSE: ORCL.

MongoDB's revenue has grown at rates of 29% or higher in the past eight quarters, while earnings have been growing at triple-digit rates recently, as the company notches profits after years of losses. 

Those losses weren't particularly unusual, as MongoDB is still a fairly young company, having gone public in 2017. Newer public companies often prioritize growth over immediate profits, reinvesting earnings into expansion. This strategy aims to capture market share before prioritizing profitability, and investors understand this.

However, with annual profitability in sight, investors have been sending the stock higher, more than doubling in price year-to-date. The current buy point is the stock's July high of $439, although the stock could potentially form a handle that would offer an earlier entry.

Novo Nordisk

The Danish company has made a name for itself among pharmaceutical stocks on the strength of its diabetes and weight loss drugs Ozempic and Wegovy.

Novo Nordisk isn't exactly a new kid on the block, but with the advent of semaglutide, the ingredient behind both treatments, the company's revenue has increased sharply. Earnings are expected to grow 42% this year and 20% next year.

Institutional investors are taking note and, as always, are mainly responsible for the stock's rise. About 80% of a stock's price movement is attributable to big institutions. MarketBeat's Novo Nordisk institutional ownership data show 1,132 institutional buyers accounted for $8.49 billion in inflows in the past 12 months, versus 545 responsible for only $860.63 million in outflows.

Novo Nordisk stock gapped out of a flat base on November 24 and remains in buy range as it's just 1.4% above the buy point of $104. 

→ Critical asset just had biggest fall on record (From Stansberry Research) (Ad)

Should you invest $1,000 in iShares Russell 2000 ETF right now?

Before you consider iShares Russell 2000 ETF, you'll want to hear this.

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While iShares Russell 2000 ETF currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
iShares Russell 2000 ETF (IWM)N/A$205.89+1.1%1.31%N/AN/AN/A
Li Auto (LI)
4.2838 of 5 stars
$43.54-5.1%N/A28.09Buy$81.72
Novo Nordisk A/S (NVO)
2.9103 of 5 stars
$124.23+3.7%0.50%45.93Moderate Buy$121.25
Oracle (ORCL)
4.9542 of 5 stars
$113.78+1.9%1.41%31.43Moderate Buy$127.00
Splunk (SPLK)
4.2315 of 5 stars
$156.160.0%N/A123.94Hold$135.31
XPeng (XPEV)
1.3422 of 5 stars
$9.95+5.5%N/A-5.32Hold$17.98
SPDR S&P 500 ETF Trust (SPY)N/A$512.85+0.9%1.29%N/AN/AN/A
MongoDB (MDB)
3.569 of 5 stars
$436.84-2.4%N/A-165.47Moderate Buy$435.68
Compare These Stocks  Add These Stocks to My Watchlist 

Kate Stalter

About Kate Stalter

  • stalterkate@gmail.com

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Experience

Kate Stalter has been a contributing writer for MarketBeat since 2021.

Additional Experience

Series 65-licensed investment advisor, financial advisor, Blue Marlin Advisors; investment columnist for Forbes, U.S. News & World Report

Areas of Expertise

Asset allocation, technical and fundamental analysis, retirement strategies, income generation, risk management, sector and industry analysis

Education

Bachelor of Arts, Saint Mary’s College, Notre Dame, Indiana; Master of Business Adminstration, Kellogg School of Management at Northwestern University

Past Experience

Founder, financial advisor for Better Money Decisions; editor, stock trading instructor for Investor’s Business Daily; columnist, podcast host, video host for MoneyShow.com; contributor for Morningstar magazine


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