This week's IBD Breakout Stocks Index highlights an enticing menu of top stocks to watch, including chicken-wing purveyor Wingstop. While not as savory but just as hot, semiconductor stocks like Axcelis Technologies, Microchip, Onsemi and Cirrus Logic have etched their names on the list.
Among tech stocks, software-sector names like Palo Alto Networks, Arista Networks and IBD Long-Term Leader Cadence Design Systems also make this stock screen.
Investors also hope to clean up on Clean Harbors and Ceco Environmental, two IBD Breakout Stocks Index members that hail from the Pollution Control industry group.
Leading biotechs Seagen and January IPO Genelux have also sparked attention with sharp stock gains, while travel leader Booking has bought a ticket into a buy zone.
How hot these stocks get, of course, will depend to a large degree on how powerfully the market indexes fortify their current uptrends. The Nasdaq remains above its 50-day moving average but is testing its 21-day line. The S&P 500 has pulled back to test support at its 50-day line, while the Dow Jones Industrial Average has met resistance at that benchmark.
Keep an eye on the action around these key moving averages in the indexes as you evaluate WING, ANET, PANW, CDNS, MCHP, ON and others on the IBD Breakout Stocks Index.
See All Stocks On The IBD Breakout Stocks Index
ANET, WING Lead Buy Zones; Breakout Stocks To Watch
The Innovator IBD Breakout Opportunities ETF tracks the names on the IBD Breakout Stocks Index. After slumping in last year's bear market, the BOUT ETF has perked up, retaking its 50-day and 200-day moving averages.
Although it reversed Tuesday as Federal Reserve Chair Jerome Powell stoked fears of a half-point rate hike, this month's jumps in the BOUT ETF point to demand. A trade in the ETF offers a quick way to have a stake in ANET, WING, PANW, BKNG, CDNS and other stocks on the IBD Breakout Stocks Index.
Stocks that have launched a breakout and continue to climb include Axcelis and Cirrus Logic. On Feb. 15, Seagen stock blasted higher after the company smashed growth estimates. SGEN stock has now posted multiple heavy-volume gap-ups as it continues to rise.
CECO and CLH stock continue to tap green technologies to generate green for investors.
Hot and spicy stocks taste-testing buy zones include WING, CDNS, MCHP, PANW and cloud leader ANET stock.
The table below shows clear demand for select stocks that form the IBD Breakout Stocks Index.
The Accumulation/Distribution Rating tracks buying and selling by mutual funds and other large investors over the past 13 weeks. The A- rating for ANET stock, for example, shows strong institutional buying over the last three months.
The up/down volume ratio covers 50 days of trading, dividing total volume on up days by total volume on down days. A number above 1.0 points to demand.
| Company | Symbol | Composite Rating | Acc./Dis. Rating | Up/down volume ratio |
|---|---|---|---|---|
| Booking | BKNG | 99 | B | 2.3 |
| Arista Networks | ANET | 99 | A- | 1.8 |
| Axcelis Technologies | ACLS | 98 | B | 1.3 |
| Microchip Technologies | MCHP | 98 | B | 1.1 |
| Wingstop | WING | 97 | B- | 1.4 |
| Cirrus Logic | CRUS | 97 | A- | 1.7 |
| Palo Alto Networks | PANW | 97 | A- | 1.4 |
| Cadence Design Systems | CDNS | 97 | A- | 1.1 |
| Clean Harbors | CLH | 94 | B | 1.4 |
| Onsemi | ON | 93 | D | 0.8 |
| Ceco Environmental | CECO | 91 | A- | 1.7 |
| Seagen | SGEN | 88 | B+ | 2.3 |
| Genelux | GNLX | 64 | n/a | 2.7 |
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 funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
