While Nvidia made the list of new buys by the best mutual funds for two straight months before the artificial intelligence giant went AWOL in the latest report, Capital One Financial returned to this monthly screen for a third consecutive time. And now, as Nvidia pops back above its 21-day exponential moving average and 50-day line Wednesday, Capital One stock looks to bankroll a new breakout.
Capital One has also just landed a spot on the Investor's Business Daily Breakout Stocks Index, alongside fellow financial sector stocks StoneCo and Paymentus.
See Who Joins Capital One Stock On The IBD Breakout Stocks Index
Capital One Discovers Big Demand
Based in McLean, Va., Capital One provides banking and financial services, including credit cards and auto loans.
In May, Capital One Financial completed its acquisition of Discover. The company said it plans to continue to offer Discover credit card products as Discover-branded cards alongside the other consumer cards currently offered by Capital One.
In the latest list of new buys by the best mutual funds, leading money managers scooped up just over $300 million worth of Capital One stock.
Other signs of demand for the financial firm include a 1.7 up/down volume ratio and seven quarters of rising fund ownership. Ninety-two funds with an A+ rating from IBD have a position in the S&P 500 member.
Paymentus and StoneCo also earn a spot on both the IBD Breakout Stocks Index and the latest list of new buys by leading funds.
See Which Stocks Just Came On — Or Off — These Premier Stock Screens
Capital One Stock Sets Up While Nvidia Rebounds
While Nvidia stock showed resilience and gapped up Wednesday, Capital One stock continues to craft an early-stage cup pattern with 232.45 buy point.
In a sign of resilient technical strength, the 21-day exponential moving average continues to hold above the longer-term 50-day benchmark. And shares of Capital One found support at and bounced back above its 21-day line on Tuesday and rose again early Wednesday.
To show rising market leadership, look for the relative strength line to bend higher as a breakout nears.
IBD Breakout Opportunities ETF
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
