Funds Endorse Cybersecurity Leader And Two Stocks Near Buy Points

As the market rally continues, several setups look strong. But a few are also getting an endorsement from institutional buyers. On Investor's Business Daily's stock screen for stocks funds are buying, three stocks are near buy points.

Quanta Services is just below a 348.42 buy point in an early-stage cup with handle base. The building and heavy construction stock gapped up on first-quarter results on May 1. Earnings of $1.78 per share rose 26% from the prior year, and sales grew 24% to $6.2 billion.

The company said that its service contracts limit "exposure to direct cost increases associated with the currently implemented tariffs". For the full year ending Dec. 31, the company factored that tariff impact and expects midpoint sales of $26.95 billion and earnings of $10.55 per share.

Quanta provides infrastructure services for the power grid as well as for the oil and gas industry.

In restaurant delivery services, DoorDash is hovering above a buy point of 201.03.  Shares sold off after first-quarter results on May 6, falling below the 50-day moving average. But they rebounded and are back in a buy zone up to 211.08. Sales grew 21% to $3 billion. Earnings were 44 cents per share, swinging from a loss of 6 cents per share a year earlier. DoorDash ranks first in the retail internet group, according to IBD Stock Checkup. The group holds 16th place among Investor's Business Daily's 197 industry groups. Analysts see profit rising 647% to $2.17 per share in 2025.

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DoorDash has a top Composite Rating of 99, and its Relative Strength Rating is high at 94. DoorDash is also on the IBD Leaderboard.

Stock Market: Fortinet Forms Base After All-Time High

In cybersecurity, Fortinet rallied to an all-time high and has retreated to form a cup-with-handle base that has a buy point of 109.33. This is an early-stage base that can lead to higher gains. Steady earnings growth in recent quarters has given the stock an Earnings Per Share Rating of 99. Shares gapped down on earnings on May 8 to form the handle.

Both sales and earnings growth decelerated. Sales grew 14% in the first quarter to $1.54 billion, and earnings of 58 cents per share increased 35% from the same period a year ago. For the second quarter, midpoint sales guidance of $1.62 billion and earnings of 59 cents per share matched estimates.

For the full year, the company foresees sales of $6.75 billion at the midpoint with $2.46 in earnings per share, also at the midpoint. Fortinet stock has outperformed 90% of other stocks in the IBD database over the past 52 weeks.

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