Toast, eToro, Amazon.com, Cameco and MasTec are stocks to watch as the major indexes continue to make progress.
The stock market is in a power trend that has produced dozens of breakouts in the past few weeks.
While that provides a bullish setting for raising exposure, investors need to watch for volatility. Investors should buy stocks with a 21-day average true range (ATR) of up to 8%, though they should be wary of being too concentrated in high-octane names.
Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Toast Stock In Buy Area
Toast has rebounded after finding support at its 21-day exponential moving average, offering an alternative entry at Tuesday's high of 43.47. This is a follow-on entry, after Toast gapped above a 36.75 handle buy point following its May 8 earnings report.
That was an impressive move for the restaurant software firm, especially since sales and earnings slightly missed expectations. Instead, investors focused on other metrics: Annual recurring revenue rose 31% and live customer locations increased 25% — both above estimates.
The company's offerings include point-of-sale hardware, kitchen displays, payment processing, delivery management and menu consultation. As such, the stock acts as somewhat of a proxy for the restaurant industry, which has climbed to No. 26 out of 197 IBD groups.
Toast has a highest-possible 99 Composite Rating and an 81 EPS Rating. Sales growth climbed 24% to 29% the past four quarters.
Toast, which is Friday's IBD Stock of the Day, has an ATR of 4.02%.
EToro Bulls Way Into Stock Market
Trading platform eToro Group, which went public less than a month ago, has been volatile. It reversed sharply lower Thursday and rebounded 9.8% on Friday. Despite the volatility, the stock is forming an IPO base with a 74.28 buy point.
ETOR stock is actionable from Wednesday's high of 66.55 with Thursday's high of 71.48 also in play
In its prospectus, eToro calls itself a pioneer in crypto trading, and its platform is largely geared toward that asset class and toward investing education. The company says it employs artificial intelligence to give users personalized insights, identify trends and optimize investing strategies.
It also has an investor community, where some of the platform's most successful traders can become "Popular Investors" who earn money when other clients copy their portfolios.
As of Dec. 31, the company had about 3.5 million funded accounts in 75 countries. Last year, eToro had net income of $192 million, up 1,161% from 2023. Commissions rose 46% to $931 million in 2024, according to its prospectus.
EToro has not traded long enough to have a 21-day ATR.
Amazon A Stock To Watch
Amazon.com is forming a cup-with-handle base. Although the stock is near a 214.84 buy point, it is already in a buy area after topping a trendline that touched the highs since Feb. 4. That entry is around 209.
The relative strength line, however, is lagging and the Relative Strength Rating is a barely passable 71. Still, this is one of the Magnificent Seven stocks and a member of the Dow Jones Industrial Average.
Amazon, however, faces significant risk from tariffs, which threaten to upend one of the world's largest retailers.
The company's Amazon Web Services is a major provider of cloud computing, and it is investing heavily in data centers and AI. This week, the company said it plans to invest about $10 billion in North Carolina to expand its data center infrastructure for AI growth. It also announced plans to invest over $5 billion in data centers in Taiwan to launch a new cloud services region.
Amazon.com has a Composite Rating of 92. Earnings increased 94%, 52%, 86% and 62% the past four quarters, according to FactSet. But analysts expect a slowdown to 4% the current quarter and a 10% increase for the full year. In 2024, EPS rose 91%.
The stock has an ATR of 2.59%, according to IBD MarketSurge.
Amazon Bucks Up, Yet Tariff Uncertainty Clouds Retail Outlook
Stocks To Watch: Uranium Play Near Highs
Cameco is forming a handle with a 62.27 buy point. The stock already topped an earlier entry at 53.48 from a narrow handle. The base's decline of 44% is deeper than desired, although a few weeks of sideways action (the current handle) could shake out weaker holders.
Its relative strength line is near highs, a good sign.
Canada-based Cameco is a major supplier of uranium used to run nuclear-power plants. The uranium refiner is among a group of stocks benefiting from soaring demand for electricity needed to run data centers.
The stock got some juice May 23, gapping up 11% in heavy volume, when President Donald Trump ordered regulators to ease approvals for new nuclear reactors. Artificial intelligence workloads are stressing existing power providers, and nuclear plans offer a way to vastly increase megawatts.
On Wednesday, uranium and nuclear stocks got more good news when nuclear-plant operator Constellation Energy signed a 20-year energy deal to supply Meta Platform's AI data centers.
The company controls the world's largest high-grade uranium reserves. It owns 49% stakes in reactor builder Westinghouse Electric and Global Laser Enrichment, which owns uranium enrichment technology.
Cameco has the highest Composite Rating (99) of 51 stocks in the metal ores mining industry group. It also has the group's highest EPS Rating (98).
The stock has an ATR of 3.69%.
MasTec Breaks Out On Analyst Note
Construction company MasTec broke out of a cup-with-handle base Friday with a 161.46 buy point after an analyst upgraded the stock. Shares are in a buy range to 169.53. Although volume was lukewarm, the relative strength line made new highs.
MasTec is the latest heavy-construction stock to break out, as the No. 20-ranked industry group continues to exude confidence. Quanta Services and Aecom broke out the past several days, while Orion Group and Granite Construction touched buy points Friday.
Goldman Sachs upgraded the stock to buy from neutral and raised the price target to 195 from 156. In a Friday note, analysts said a large number of oil and gas pipeline projects should mean $2.4 billion-$2.5 billion in annual revenue for MasTec, the largest pipeline construction company, TheFly.com reported.
The Coral Gables, Fla.-based company also builds utility plants, renewable energy projects and other types of infrastructure. In its first-quarter report, MasTec swung to a profit of 51 cents a share vs. a year-ago loss of 13 cents, and management raised full-year guidance. Sales growth accelerated slowly for a second straight quarter, to 6%.
Management owns 19% of the company's shares, MarketSurge shows, which is a substantial stake in the company's future.
MasTec stock has 21-day ATR of 3%. Its Composite Rating is 95.
