A new market uptrend as the holiday season begins has investors shopping for stocks to watch in an emerging Santa Claus rally. Recent action in Magnificent Seven stocks like Amazon and Microsoft, as well as ride-share king Uber Technologies and cloud leader Arista Networks, has loaded up Santa's sleigh with a slew of names on the IBD Breakout Stocks Index.
Boosted by cloud computing and artificial intelligence, Microsoft continues to ride the rally to new heights. Streaming pioneer Netflix joins MSFT stock, AMZN, Uber and a host of other components of the IBD Breakout Opportunities ETF, which tracks companies on the IBD Breakout Stocks Index.
Meanwhile, after struggling since 2022 as tech and growth stocks fell out of favor, the BOUT ETF has begun to perk up. Updated and rebalanced weekly, the BOUT ETF enables investors to tap into stocks like Amazon, Microsoft, Uber, Arista Networks and many others with a single trade.
Amazon Stock On List Of Breakouts To Watch
The table below highlights just a few stocks in or near a buy zone included in the latest update of the BOUT ETF. Click here to see the full list.
Since posting 236% earnings growth for Q3 on Oct. 26, Amazon stock has continued to rise. As the online retail and cloud services giant got back above its 50-day moving average, it also cleared a 134.48 buy point in a double bottom base.
Additionally, in a sign of massive demand for Amazon among top money managers, the stock made this month's list of new buys by the best mutual funds, which comes on Friday. These savvy investors scooped up more than $16 billion worth of shares in AMZN stock.
Uber, Microsoft And More Add To List Of Stocks To Watch
With its relative strength line soaring, Uber stock posted a positive reversal Tuesday, fueling a breakout past a 49.19 entry. That action earned got Uber recently featured as the IBD Stock Of The Day. The stock remains in buy range early Wednesday.
Along with fellow Magnificent Seven stock Amazon, Microsoft continues to climb, with its RS line also hitting a 52-week high. The IBD Long-Term Leader blasted past a 340.86 buy point in a double bottom, a common pattern in choppy markets.
Riding the AI wave, ANET stock also broke out of a double bottom. As a result of a strong gap-up on earnings and a continued climb, Arista is now extended from its 198.46 entry.
To explore other stocks to watch in this Santa Claus rally, click on the ticker symbols below to see the current stock prices and stock charts for each company.
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | Ind Group RS | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Arista Networks | 99 | 97 | 97 | A | A | A- | |
| Microsoft | 99 | 97 | 95 | A+ | A | B- | |
| MercadoLibre | 98 | 82 | 92 | C+ | A | A- | |
| Dynatrace | 98 | 98 | 89 | A- | A | B+ | |
| Urban Outfitters | 98 | 99 | 94 | A | C | B | |
| Arch Capital | 98 | 98 | 94 | B+ | A | B- | |
| Grand Canyon Education | 97 | 91 | 94 | A+ | A | B+ | |
| United Rentals | 97 | 96 | 87 | B+ | A | C- | |
| Chipotle Mexican Grill | 97 | 97 | 93 | D+ | A | A- | |
| JFrog | 96 | 82 | 87 | A- | C | C- | |
| Advanced Micro Devices | 96 | 81 | 95 | A | B | A | |
| Netflix | 96 | 94 | 94 | A | B | D | |
| Ensign | 96 | 96 | 88 | B+ | A | B- | |
| Trade Desk | 95 | 97 | 95 | C- | A | B | |
| Toll Brothers | 95 | 98 | 95 | B- | A | B- | |
| Martin Marietta | 95 | 97 | 89 | B- | B | B | |
| Noble | 93 | 54 | 88 | B | B | B+ | |
| Wingstop | 89 | 98 | 94 | D+ | - | B+ | |
| Uber Technologies | 89 | 77 | 96 | C+ | D | B+ | |
| Amazon.com | 88 | 82 | 95 | C+ | C | B- |
See Full List Of Stocks On The IBD Breakout Stocks Index
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF 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.
