In 2023, the stock market is proving its resilience. After a quick dip into correction territory, the S&P 500 Index ($SPX) has quickly bounced back to a solid 14% year-to-date gain, despite lingering economic uncertainties. Of course, market breadth has been a big story this year, and not all stocks are looking quite as strong as the broader benchmarks.
For savvy investors, screening for stocks with bullish moving average breakouts is one way to drill down on the best names, especially in this stock-picker's market. One popular indicator to watch out for is a bullish moving average cross, which occurs when a shorter-term moving average crosses above a longer-term counterpart. This can act as confirmation that a short-term bottom is in place, and a new leg higher is starting.
In the current environment, the best stocks will offer not only technical strength, but above-average growth forecasts, bullish analyst recommendations, and exposure to in-demand industries. Today, we've got two stocks to fit that description, both supported by the tailwinds of bullish moving averages.
Here's a look at why these top tech names should be on your radar right now.
AMD: The High-Performance Computing Powerhouse
At a market cap of $181.58 billion, semiconductor specialist Advanced Micro Devices (AMD) is a major player in high-performance computing, graphics, and their chips are used in gaming, data center, and cloud applications - as well as artificial intelligence (AI). They've got a product lineup that includes Ryzen processors, Radeon graphics cards, EPYC server processors, and Instinct accelerators.
AMD is up more than 9% in the last month, and the stock's 20-day moving average just crossed over its 50-day.
The company's Oct. 31 earnings report sparked the latest leg higher in AMD shares. In Q3 2023, AMD reported earnings and revenue that beat analysts' expectations, and the midpoint of the chip company's current-quarter revenue guidance was also above consensus.
Looking ahead, analysts expect AMD to report earnings growth of 51% in fiscal 2024 to $2.90 per share.
The stock is highly rated on Wall Street, with a consensus “strong buy” recommendation. Out of 28 analysts, 21 scream "strong buy," one says "moderate buy," and six go with "hold." The mean target price is $132.14, hinting at 11% expected upside from current levels.
ADBE: The Digital Media and Experience Leader
Adobe Inc. (ADBE) is a global leader in digital media and digital experience solutions, with a huge footprint in cloud software and licensing. The company offers a range of products and services, such as Photoshop, Illustrator, Premiere Pro, Acrobat, and Creative Cloud. The company's market cap is $263 billion.
ADBE is up 11.8% in the past month alone, and trading above its bullishly crossed 20-day and 50-day moving averages.
Like AMD, Adobe shares got a shot in the arm from the company's most recent earnings results in mid-September. For fiscal Q3, Adobe reported stronger-than-expected earnings and revenue, and issued guidance that surpassed the Street's expectations.
For fiscal 2024, analysts expect continued earnings growth of 11.4% to $14.27.
Overall, Wall Street is giving Adobe a thumbs-up, with a consensus “strong buy” rating. Out of 24 analysts, 17 are shouting "strong buy," one's in for a "moderate buy," and six are keeping it cool with a "hold."
The mean target price is $613.04, hinting at a modest 3% upside from current levels - but analysts at Bernstein, Oppenheimer, and BMO anticipate upside of 10% or more in the next year, based on recent notes.
