After reporting earnings and flashing volatile, seesaw signs in August, Nvidia took a hit Tuesday, falling nearly 10% and losing support at its 50-day moving average. Meanwhile, Freshpet broke out to a 52-week high before pulling back as the Nasdaq got spanked. But Freshpet ended the day in buy range with a small gain.
The fresh pet food maker joined a cadre of stocks to watch trying to fight Tuesday's turbulence, including ServiceNow, CyberArk Software.
Nvidia, Freshpet and ServiceNow are among the stocks that earn a spot on Investor's Business Daily's Leaderboard. They are joined by an eclectic list of breakout growth stocks, including Eli Lilly, SharkNinja, DaVita and more.
Nvidia Stock Falling But Still Formidable
The unmistakable and ongoing boom in artificial intelligence drove triple-digit sales and earnings growth for Nvidia in each of the last five quarters. Even as that growth slowed in the company's latest report on Aug. 28, the AI powerhouse still delivered 122% revenue growth to $30 billion. Earnings jumped 152% to 68 cents per share for the quarter.
Going forward, analysts expect slower, but still impressive growth. Revenue growth estimates for the next four quarters range from 43% to 81%. Bottom-line gains are expected to run between 42% to 84%.
Nonetheless, shares of Nvidia were down over 9% Tuesday and the stock has seen its once-"perfect" 99 Composite Rating slip to 95. Its relative strength line continued its recent downturn.
Nvidia Again? This Mag 7 Stock Will Grow Fastest Next Year
Freshpet Set To Unleash Breakout Brigade — If The Market Allows
While the Nasdaq fails to hold support at its 21-day exponential moving average after slicing below its 50-day line on Tuesday, Nvidia stock also now trades below both benchmarks. But Freshpet, ServiceNow, CyberArk and DaVita remain above those lines as they attempt to fortify recent breakouts in a challenging environment.
IBD Leaderboard watchlist stocks like Wingstop, DoorDash and MakeMyTrip also saw their current setups come under pressure as September got underway.
Freshpet — Tuesday's IBD Stock Of The Day — was profiled in The New America column on Aug. 23. With a network of company-owned refrigerators in roughly 27,000 stores across North America, Freshpet boasts steam-cooked, grain-free and antioxidant-rich meals for dogs as well as cats. While Nvidia struggles, Freshpet stock has jumped into buy range past a 136.35 buy point in a second-stage consolidation. After reversing off its initial gains, the stock ended the session at 137.15.
On Tuesday, ServiceNow also added to its recent breakout before running into resistance. ServiceNow stock retreated to post a 2% loss, pulling it back below the 850.33 entry in a third-stage flat base.
Featured in the IBD Breakout Stocks column on Aug. 14, dialysis center operator DaVita remains in buy range after breaking out last month. Like Freshpet, it held up relatively well Tuesday, managing a small gain.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
