Tuesday's stocks to watch come from the Stocks Funds Are Buying screen. This screen identifies stocks in which big mutual funds are increasing their positions. Other stocks on the screen include Cencora and McKesson.
Funds Pile Into Tesla Stock
Tesla declined 1.3% midday Tuesday, threatening to erase Monday's gains.
Tesla stock is building a cup with handle with a 278.98 buy point, according to IBD MarketSmith chart analysis. But the stock suffered a serious setback during last week's sell-off. Shares are below their 50-day line, which loom as a key resistance level to watch.
With Tesla likely to report its Q3 deliveries on Monday, Wall Street is predicting the number will lag the EV giant's record-setting 466,140 vehicles in Q2. Since the end of July, analysts had forecast Tesla's Q3 would outpace the second quarter.
However, that changed this week with the analyst consensus that Tesla will deliver 462,000 vehicles, down around 2% vs. the late July estimate, according to FactSet. Analysts now believe low vehicle inventory due to price reductions, slowing production and consumer interest turning to the new Model 3 and the Cybertruck will take a toll on Q3 deliveries.
Meta Stock In Cup With Handle
Social media giant and IBD Leaderboard stock Meta Platforms dipped 0.5% midday Tuesday, trading about 4% away from a cup-with-handle's buy point at 312.87. Meta stock is below its 50-day line, and a decisive retake would be bullish for the stock's immediate prospects.
Meta's two-day Connect virtual conference kicks off Wednesday. The company will unveil the third generation of its virtual-reality headset.
"Connect has typically been a virtual reality-driven event and the official launch of the Quest 3 will be a highlight, but we also expect an update and possible launch of Meta's first consumer-facing gen-AI (generative artificial intelligence) solutions," Loop Capital analyst Rob Sanderson said in a client note Friday.
Outside Tesla Stock: Cencora, McKesson
Outside of Tesla stock, Cencora and McKesson are near buy points Tuesday in the face of a deepening stock market correction.
Cencora, formerly known as AmerisourceBergen, distributes brand name and generic drugs. The company offers over-the-counter health care products, home care supplies and equipment, and related services.
Cencora shares are moving up the right side of a cup base that has a 194.79 buy point. Keep an eye out for a handle to offer a lower entry.
Finally, McKesson is breaking out past a flat base's 441 buy point amid recent gains. Shares dropped 1% midday Tuesday, holding right above their latest entry.
The company is the biggest distributor of pharmaceuticals in the U.S., controlling about 37% of U.S. pharmaceutical drug sales. Further, the company is moving deeper into specialty medicines.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.