Second-quarter earnings season is in full effect, and expectations are high in the stock market that earnings in the technology sector will justify the market's strong gains since April.
Taiwan Semiconductor, the world's largest chip foundry (also known as TSMC), started things off by reporting a 79% jump in earnings and 54% increase in revenue on July 17.
With growth like that, it's no surprise that TSMC was recently ranked in the IBD 50. The screen is of leading growth stocks that subscribers can access electronically at Investors.com.
Just click the Stock Lists tab at the top of the homepage. Stocks are sorted by their rank in the IBD 50, but you can sort the list by any column header to get a different look.
Sort by "volume % change," for example, to see which stocks are rising or falling in very heavy volume. Heavy-volume price increases are usually the result of at least some institutional buying.
You can also sort stocks by the "EPS % change" column header to see which firms grew the bottom the line the fastest in the latest reported quarter. Since earnings growth is the main driver of a stock's price, it makes sense to keep tabs on some of the market's fastest growers.
Stock Market Leaders
The accompanying table is a list of IBD 50 stocks that showed a triple-digit earnings increase in their latest reported quarter. It's a high-quality list of stocks, led off by TSS.
The company, whose full name is Total Site Solutions, sells data center services, helping customers integrate and optimize their IT infrastructure. The stock surged in mid-May when TSS reported a first-quarter adjusted profit of 12 cents a share, up sharply from 1 cent a share earned in the year-ago quarter.
After a post-earnings breakout from a cup-with-handle base during the week ended June 6, TSS just made a solid first test of its 10-week moving average.
American Superconductor fell sharply down to its 21-day exponential moving average Tuesday, but buyers lifted the stock well off lows.
When the company reported fiscal fourth-quarter results in May, investors took notice of a 140% surge in quarterly profit. As a provider of power systems solutions, American Superconductor helps electric utilities and renewable energy developers improve grid reliability, efficiency, and performance. AMSC also helps wind turbine manufacturers design and produce more efficient turbines. As data centers proliferate, so will the demand for AMSC's services.
Astera Labs finally joined the breakout ranks recently with a decisive move above the 100 level. Tracked in the same industry group as Nvidia, Astera provides connectivity solutions for cloud and AI infrastructure, which improves data transfer speeds between servers in data centers.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.
