To kick off August, artificial intelligence leaders Meta Platforms, Microsoft, Google parent Alphabet, and AppLovin have popped up on the Investor's Business Daily Breakout Stocks Index. Financial powerhouses JPMorgan Chase and Charles Schwab, as well as defense stocks to watch GE Aerospace, Heico, Howmet Aerospace, Woodward, Astronics, and Kratos Defense & Security, also made this screen.
In total, 49 stocks to watch landed on this list, which gets updated weekly. And investors can own a piece of each with one trade in the Innovators IBD Breakout Opportunities ETF, which has formed a cup-with-handle showing a 38.56 buy point.
See All Names On The IBD Breakout Stocks Index
Meta Stock, Microsoft Extended As Others Tease Buy Zones
With the S&P 500 and Nasdaq bouncing off their 21-day exponential moving averages, megacaps like Meta and Microsoft have climbed out of buy range. And the army of defense stocks on the IBD Breakout Opportunities ETF, including GE Aerospace and Heico, also remain extended despite pullbacks this week.
Meanwhile, several names remain in or near buy range.
AppLovin – one of the 100 best stocks of 2024 alongside Palantir Technologies – looks to ride the continuing AI boom to a fresh breakout. Boosted by strong demand among the best mutual funds, the AI-fueled stock has crafted a first-stage cup pattern. The buy point is 428.99.
After topping second-quarter estimates on July 23, Alphabet stock has continued to build on a July 14 breakout. Shares are now slightly extended beyond the initial 181.23 entry.
Toast – featured in this column on July 9 – has rebounded back into buy range after briefly falling below its 50-day line early Wednesday. The provider of AI-powered solutions for the restaurant industry broke of an early stage flat base with a 45.56 buy point last month. Toast edged past analysts views on Tuesday's earnings report.
US Foods popped just beyond its buy zone Wednesday, with earnings due Thursday. Featured in the IBD Stock Analysis on July 11, the food distributor broke out of an early-stage flat base with a 79.64 buy point last month.
Nvidia partner and semiconductor equipment maker KLA has shown volatile action as it tests the 896.32 entry it first cleared in mid-June. The stock bounced back above its 50-day line on Wednesday.
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.
