To kick off a new month and new quarter, this week’s update to the IBD Breakout Stocks Index features artificial intelligence powerhouses Nvidia (NVDA), Alphabet (GOOGL), Palantir Technologies (PLTR) and Arista Networks (ANET).
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It also shines a spotlight on six IPO Leaders, including Duolingo (DUOL), Kaspi (KSPI) and Samsara (IOT).
The question now is, how will these and other leading growth stocks fare as the major market indexes run into some wavy turbulence this week?
Tracking the IBD Breakout Stocks Index, the Innovator IBD Breakout Opportunities ETF (BOUT) provides a good bellwether to watch. As components of the ETF like Nvidia, Palantir, Arista and Google stock have come on and off the index this year, the BOUT ETF has perked up.
After a breakout at the end of last year failed to gain traction, the BOUT ETF formed and broke out of an early-stage flat base in February. Shares climbed to a high of 36.58 on March 28 before retreating.
As the tech-heavy Nasdaq sputtered, then rebounded this week Magnficicent Seven stocks Nvidia and Google, as well as Palantir and Arista, showed resilience, the BOUT ETF has gapped down only to gap right back up. With shares of NVDA, GOOGL and fellow BOUT components like Salesforce.com (CRM), HubSpot (HUBS) and Texas Roadhouse (TXRH) showing resilience at key moving averages, the ETF has now climbed beyond the top of its buy zone.
See All Names On The IBD Breakout Stocks Index
6 IPO Stocks To Watch
In addition to tech titans like Nvidia, Google, Palantir and Salesforce, the BOUT ETF showcases six IPO Leaders, several of which are in or near new buy zones. Reflecting recent, but possibly retreating market pressure, shares of Duolingo, BBB Foods (TBBB), IOT stock and others continue to navigate the turbulence.
IPO stocks are prone to experience volatility, and the IPO Leaders on the BOUT index certainly have.
Language learning platform Duolingo briefly cleared a 241.86 buy point in a cup with handle before immediately retreating. But DUOL stock has shown resilience, retaking its 21-day line on Wednesday. Volume in this post-breakout pullback has stayed below average. Watch for another move above the buy point.
Mexican retailer BBB Foods is the poster child for volatility in a brand-new IPO. Featured in the IBD Stock Analysis on March 22, TBBB stock has swung sharply — both up and down — since the stock broke out of an IPO base following its market debut in February. After yet another wild gyration Tuesday and a dip Wednesday, the stock remains within its buy range.
Turbulence has also impacted fellow IPO Leaders Procore Technologies (PCOR) and Samsara. Procore has found support at its 50-day line. Samsara did, too, but not before dropping below its buy zone and triggering the 7% sell rule.
Meanwhile, Kazahkstan-based fintech Kaspi — featured in this column on Feb. 21 — has continued to soar. Commercial property and casualty insurer Skyward Specialty Insurance (SKWD) has also continued its climb from a breakout in February, albeit with a post-earnings shakeout.
Nvidia Stock Leads AI Breakouts
As Nvidia holds support at its 21-day exponential moving average as it tries to hold the 900 mark. Meanwhile, Google stock has reclaimed a 153.78 buy point.
Fellow AI stock HubSpot continues to test support at its 50-day line as it works on a second-stage base with a 660 entry. Shares of Arista Networks have held above the 21-day line as the cloud and AI leader crawls back above the buy point it cleared March 20.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF (BOUT) from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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2024-04-03 18:44:00
