With earnings season in full swing, the IBD Breakout Stocks Index highlights leading growth stocks across a broad range of sectors that have either reported or are on deck. Idexx Laboratories (IDXX), Generac (GNRC), Repligen (RGEN), Goldman Sachs (GS) and Jefferies Financial (JEF) have already reported.
Nvidia (NVDA), TopBuild (BLD), Installed Building Products (IBP) and Fox Factory (FOXF) are among those on tap to release their latest quarterly numbers as the stock market rally comes under pressure.
President Joe Biden’s proposed tax hikes seemed to put a damper on Americans’ outlook for the U.S. economy, according to the latest IBD/TIPP Economic Optimism Index. As a result, many of the top stocks to buy and watch featured on the IBD Breakout Opportunities ETF (BOUT) have also taken a hit in recent days.
Boosted by strong rebounds across the financial, semiconductor, building, leisure and other sectors, the BOUT ETF rose 147% off its March 2020 lows until running into resistance in the middle of February 2021.
Along the way, Nvidia, Idexx, Generac, TopBuild, IBP stock, GS stock and countless others featured on the BOUT ETF at various times have strongly participated in the post-pandemic rally.
Top Growth Stocks Near A Breakout
Before discussing any potential breakouts, first understand how the general stock market trend has a tremendous impact — good or bad — on the performance of individual growth stocks.
Stock market history shows that three out of four stocks generally move in the same direction as the major stock market indexes — the Nasdaq, S&P 500 and Dow Jones Industrial Average. So as the stock market indexes, particularly the Nasdaq, come under pressure Tuesday, understand that makes it difficult even for leaders like Idexx, Generac, GS stock and Nvidia stock to power sustained new climbs.
Especially during earnings season, investors should keep a close eye the current stock market, stick to sound rules for how to buy stocks and when to sell stocks, and follow a time-tested investing routine to stay profitable and protected.
With that in mind, here’s a look at some top growth stocks currently featured on the BOUT ETF.
With earnings due May 26, analysts expect Nvidia to deliver 82% EPS growth for the quarter and a 35% increase for the year. The chip designer and leading AI technology stock has generated average earnings growth of 67% over the last three quarters.
Nvidia had been trading right around a 615 buy point, but dropped more than 3% Tuesday in rising volume. NVDA stock was just trimmed to a quarter position on Leaderboard but on a positive note, Nvidia came off its lows and found support at its 50-day moving average.
IDXX stock is showing similar action to Nvidia as it works on a 561.62 buy point in a cup with handle.
A leading provider of medical products for the veterinary market, Idexx was recently featured in the IBD Stock Analysis. The company reported earnings on May 4, posting accelerating growth for both EPS (73%) and sales (24%). Still, the stock sold off on the news and is now testing support at its 50-day line.
Financial Growth Stocks To Watch: GS Stock, JEF Stock
Goldman Sachs hails from the Money Center industry group, while Jefferies Financial is in the Investment Bank and Brokers industry. Both GS stock and JEF stock earn a spot on the IBD 50 list of top growth stocks. GS stock is also on the IBD Big Cap 20, while JEF stock also secures a spot on Sector Leaders, IBD’s most stringent screen.
GS stock and JEF stock have both already reported and are currently working on new chart patterns.
With a 98 Composite Rating, GS stock earns top billing among fellow bank stocks Morgan Stanley (MS), Bank of America (BAC) and JPMorgan Chase (JPM). Goldman Sachs posted 498% earnings growth last quarter.
Along with Futu (FUTU), JEF stock sports a 98 Composite Rating. Jefferies Financial posted 476% EPS growth last quarter, bringing its average earnings growth over the last three quarters to 389%. Analysts expect the company to deliver 494% EPS growth for the current quarter.
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 allows you to essentially invest in the entire index in addition to or rather than buying individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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