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.

On 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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IPO Stock Eyes New Buy Point

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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