Updated weekly, the Investors Business Daily Breakout Stocks Index has ballooned to feature 108 stocks, including Magnificent Seven members Meta Platforms and Microsoft. Three tasty restaurant stocks to watch — Cheesecake Factory, Texas Roadhouse and Sprouts Farmers Market — are also on the menu.
Boosted by a popular new online game, Roblox adds to the barrage of breakouts alongside cybersecurity stocks CrowdStrike, which reported first-quarter earnings late Tuesday, and Rubrik. Rubrik reports on Thursday.
Showing further market breadth, enterprise software firms Snowflake and Monday.com join aerospace and defense plays GE Aerospace, Loar and Kratos Defense & Security in securing a spot on the list.
Meta Stock Leads Slew Of Names In Buy Range
When it comes to how to buy stocks, investors should focus on those in or near buy range. One key to risk management is to avoid "chasing" breakout stocks that have already climbed out of their ideal buy zones.
Examples of stocks on this screen that have now risen beyond buy range include Roblox, Snowflake, GE Aerospace, DoorDash and Duolingo. CrowdStrike and Rubrik also fit that bill.
On Monday, Meta stock cleared a 662.67 buy point in a cup with handle. The artificial intelligence and social media giant eased back on Tuesday, but jumped over 3% Wednesday and remains in buy range.
Other names in or near a buy zone include Loar, Boston Scientific and Intuitive Surgical. The latter is the robotics surgery leader that earns a spot on the IBD Leaderboard watchlist and continues to work on a new setup as it finds support at its 21-day exponential moving average.
Ferrari continues to rev up toward a 503.10 buy point in a first-stage cup with handle. In a move that could bode well for a future breakout, Ferrari reset its base count at the end of March by undercutting the low in its prior pattern.
See Who Joins Meta Stock On The IBD Breakout Stocks Index
Three More Tasty Breakout Stocks To Watch
Restaurant stocks Cheesecake Factory and Texas Roadhouse have joined grocery store chain Sprouts Farmers Market in setting up new buy points.
Like Ferrari, Cheesecake Factory recently reset its base count. Its new chart pattern is a first-stage cup with handle. The restaurant stock moved solidly back into buy range on Wednesday from a 56.26 buy point.
Texas Roadhouse has put a new handle entry on the menu at 199.99. Like Cheesecake Factory, the operator of 784 restaurants in 49 states also reset its base count to make the current pattern a first-stage base.
On Monday, Sprouts stock briefly cleared a 178.16 buy point in a cup with handle of its own. But the seller of natural and organic food quickly retreated on Tuesday and fell again Wednesday. Still, the new base remains intact and Sprouts has held support above its 21-day line.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities exchange traded fund 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.
