Wall Street Raises Outlook For Three AI Names And This Medical Stock

2026-03-23 17:39:30

As investors wait in hopes of dust settling on the war front, fundamental metrics are in focus in Monday’s stock market. Investor’s Business Daily’s stock screener for rising profit estimates shows four companies that are also near buy points. Three are artificial intelligence names.

Sterling Infrastructure (STRL) is in a buy zone above a cup base that has an entry at 419.14.

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Sterling Infrastructure provides construction services for large-scale projects. Fourth-quarter earnings of $3.08 per share grew 111%, accelerating for the second continuous quarter. Sales growth also picked up pace, rising 51% to $756 million.

The company’s development and electrical services for AI data centers contributed significantly to its backlog of $3 billion at the end of 2025. The heavy construction name is also involved in highways, airports and rail construction projects and in concrete slab work for residential and commercial buildings.

For 2026, analysts have raised their earnings estimates to $13.52 per share, or a 24% increase. That is higher than the company’s outlook of $11.95 per share in profits at the midpoint.

Estimates are higher for 2027 as well, expected at $15.64 in earnings per share or a 16% growth. Sterling Infrastructure has a Relative Strength Rating of 97 while its all-around Composite Rating and Earnings Per Share Rating place the stock among the very best in IBD’s database.

See The Latest Updates To IBD Watchlists

Stock Market: Two AI Names Near Buy Points

In the semiconductor equipment space, two notable stocks with rising profit estimates and near buy points include Nova (NVMI) and KLA (KLAC). Both chip companies have benefited from the AI boom.

Nova’s setup looks strong with shares building a consolidation base that has their all-time high of 507.27 as the buy point. The blue dot on IBD MarketSurge shows that the relative strength line is at a 52-week high.

Fourth-quarter earnings came in at $2.14 per share or a 10% rise while sales grew 14% to $223 million. Nova provides high-precision tools for the chip fabrication process. Analysts see earnings rising 20% to $10.33 a share in 2026 and another 21% to $12.49 a share in 2027.

Also in the chip gear providers group, KLA has formed a consolidation with a buy point of 1,693.35. The weekly chart on MarketSurge shows that the relative strength line is at a new high.

KLA reported earnings of $8.85 per share on sales of $3.3 billion for its December-ended quarter. KLA provides process control tools and services for the semiconductor industry and holds an RS Rating of 95.

Analysts see profit growth strengthening for the full year to $36.60 a share which amounts to 10% growth. In 2027, they see a 31% increase to $47.91 a share.

DaVita Gets A Profit Outlook Boost

Finally, in the medical outpatients/home care group, DaVita (DVA) is in a deep cup-with-handle base with a buy point of 159.42. This is a first-stage base that can net higher gains than later-stage ones after a breakout.

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DaVita provides kidney treatment, transplant and other services globally. Fourth-quarter earnings grew 52% to $3.40 per share while sales increased 10% to $3.6 billion.

Profit estimates suggest a 31% increase to $14.13 per share in 2026 and 15% growth in 2027 to $16.27 per share.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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