Risk and uncertainty remain but a new Nasdaq "power trend" has Axon Enterprise, Medpace, Visteon and Fluor exploring fresh buy zones. Each earns a spot on IBD Leaderboard, alongside four of the best ETFs to watch.
Featured as Jan. 30's IBD Stock Of The Day, AXON stock was also profiled earlier in the Dec. 23 IBD Stock Analysis column. The maker of Taser nonlethal stun guns and police bodycams continues to trade within buy range after clearing a 193.95 buy point.
Visteon, featured in this column on Jan. 30, also trades within a new buy zone after a recent breakout.
Visteon, featured in this column on Jan. 30, also trades within a new buy zone after a recent breakout.
It makes connected-car solutions for major automakers like Ford and General Motors. Visteon has also gotten a boost from partnerships with Amazon and Qualcomm. Offering technology crossing a range of industries, including artificial intelligence and cybersecurity, Visteon is positioned to benefit from growing AI trends.
Medpace is a clinical research organization (CRO) squarely-focused on biotech and pharmaceutical companies. After soaring on Q3 earnings in October, MEDP stock continues to hold the bulk of those gains while getting set to report Q4 numbers on Feb. 13.
Last month, it immediately retreated after clearing a 235.82 buy point in an early-stage consolidation. But the stock has shown resilience, once again testing the earlier entry with earnings on deck.
Fluor, which provides equipment and services for the energy and mining industries, is testing a buy zone with earnings due Feb. 21. The stock is finding support at its 21-day exponential moving average after sliding below a 36.16 entry in a second-stage flat base.
Best ETFs To Build Profits In New Trends
In addition to individual securities like Axon, Visteon and others, IBD Leaderboard also highlights the best exchange traded funds to buy and watch.
ETFs offer the chance to benefit from certain trends and sectors while mitigating the risk of individual stocks. In the new uptrend after last year's bear market, ETFs also help investors carefully test the water. It lets investors see which stocks and trends will lead before aggressively buying individual stocks.
IBD Leaderboard currently features six ETFs, four of which are on Leaderboard's list of "Leaders Near A Buy Point."
iShares U.S. Home Construction ETF and SPDR S&P Retail ETF are both extended from recent buy zones. The ITB ETF enables investors to tap into strength among homebuilders without the need to put their full investment in that sector into just one component.
Top holdings include D.R. Horton, Lennar, PulteGroup, TopBuild and more. In the XRT ETF, you'll find Carvana, Wayfair and Boot Barn among the top components.
ETFs near buy points include the Invesco S&P 500 Equal Weight ETF and SPDR Materials ETF. Also, U.S. Global Jets ETF and VanEck Semiconductor ETF.
Exchange-traded funds provide instant diversity across a range of stocks in sectors of interest. That's exemplified by the JETS ETF, which lets investors tap into the rebound in travel stocks with one trade. Top holdings include American Airlines, Delta Air Lines, United Airlines and Southwest Airlines.
A Safer Way To Buy Nvidia And Other Tech Stocks?
Tech stocks took a beating last year. Companies like Nvidia, ASML, Taiwan Semiconductor and Advanced Micro Devices all got hit.
They are also leading components of the SMT ETF, which is showing strength on its weekly chart. This Leaderboard ETF has retaken its 10-week moving average, which now stands above its 40-week line — a sign of rebounding technical strength.
So, if you're hesitant to buy NVDA stock, or just want to spread risk across a range of semiconductor and tech stocks, the SMH ETF could offer the perfect trade.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
