As the Dow Jones Industrial Average and other stock indexes were mixed during Tuesday's session, Caterpillar, Nvidia, chipmaker Taiwan Semiconductor Manufacturing, Teck Resources, and Weatherford were among the best names to watch in the ongoing stock market rally.

With key indexes pausing after big gains in recent sessions, investors using The IBD Methodology should continue to add investment exposure with strong breakouts past correct buy points.

Dow component Caterpillar is falling back into a 5% buy range above a 789.81 buy point in a cup base amid recent losses, according to IBD MarketSurge chart analysis. Shares slipped about 2% Tuesday afternoon.

Caterpillar stock backstory: Last week, Wells Fargo raised its price target on Caterpillar stock to 960 from 870, maintaining its overweight rating. Also, Truist hiked its target to 920 from 786, with a buy rating. Caterpillar is set to report first-quarter earnings before Thursday's market open.

Wells Fargo highlighted project additions, rising lead times, and pricing strength for Caterpillar's gas turbines powering artificial intelligence data centers and gas compression.

Truist's upgrade highlighted renewed U.S. manufacturing growth following a three-year contraction. The firm said that's a positive development for machinery, infrastructure services, and diversified industrial names in its coverage.

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Stocks To Watch: Teck Resources, Weatherford

Two names to watch that are not part of the Dow Jones index are Teck Resources and Weatherford.

Shares of Teck Resources attempted to break out past a 62.41 cup-base entry in recent sessions, but they were turned away Tuesday. Shares fell nearly 4% Tuesday afternoon.

Teck Resources stock backstory: The Canadian miner is benefiting from huge copper demand, driven by electric vehicles, AI data centers and power grids. Teck is making a shift to an "energy transition" metals pure-play given this bullish backdrop.

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Meanwhile, shares of Weatherford are at the top of a 5% buy zone above their latest buy point. The 104.71 entry is in a cup-with-handle base. The stock was up nearly 1% during Tuesday's trade.

Weatherford stock backstory: Weatherford is an established name in oil field services. For the first quarter, Weatherford said adjusted per-share earnings increased 45% on a 3% revenue drop. It felt the pain across its three business segments, which saw decreases almost across the board on both a sequential and year-over-year basis.

Chief Executive Girish Saligram cited the Iran conflict for "losses in revenue and increased costs." However, disciplined spending still helped the oil and gas equipment provider generate free cash flow of $85 million, up 29% year over year.

TSMC Stock In Buy Range

Another name to watch outside the Dow Jones Industrial Average is Taiwan Semiconductor, better known as TSMC. Shares of Nvidia's chip producer dropped more than 4% during Tuesday's session, trading back in a 5% buying area from a 382.16 entry in a cup-with-handle base.

TSM stock backstory: Last week, TSMC introduced its most advanced process technology at the 2026 North America Technology Symposium in Santa Clara, Calif. It said its new A13 process technology will enable more efficient and compact designs for AI and high-performance computing.

A13 chip production will begin in 2029.

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Investing Tips

Investor's Business Daily maintains its recommended stock exposure at 80% to 100% amid strong gains in recent sessions. That means IBD readers should adjust their exposure by buying strong breakouts past the correct buy points.

An essential resource for daily breakouts is IBD MarketSurge's Breaking Out Today list. It shows MarketSurge Growth 250 stocks that are rising past fresh buy points. Before making any investment decisions, be sure to check current stock market conditions. Also, use IBD Stock Checkup to view ratings for the most important fundamental and technical criteria.

To get chart analysis on stocks to buy and watch, as well as high-odds buy and sell alerts, check out IBD MarketSurge, IBD Leaderboard, and IBD SwingTrader.

Best Stocks To Watch, Including A Dow Jones Index Leader

These are the best stocks to watch near buy points, including Dow leader Caterpillar.

Symbol	Company	Chart analysis
	Caterpillar	In buy range above 789.81 cup-base entry.
	Taiwan Semiconductor	Testing cup-with-handle entry at 382.16.
	Teck Resources	Below 62.41 buy point in cup base.
	Weatherford	Breaking out past the 104.71 buy point.

Follow Scott Lehtonen on X at @IBD_SLehtonen for top stocks to watch and the Dow Jones Industrial Average action.

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