What do Costco Wholesale, Birkenstock Holding and Netflix have in common? They all appear on the IBD MarketSurge Blue Dot screen, which selects growth stocks outperforming the S&P 500.
Moreover, the strength of the screen is that it identifies stocks that are either building a base or are breaking out while the relative strength lines are at new highs. The RS line measures a stock's price performance vs. the S&P 500. A blue dot appears on a chart when a stock meets the screen's criteria.
Costco Stock Nears Buy Point
Costco stock is in a cup base with a 896.67 buy point. The buy point is also the stock's all-time high set on July 9. The IBD SwingTrader stock is within 2% of the entry point.
Shares of the retailer have quickly advanced from the bottom of the base and reclaimed their 50-day moving average on the way up. Costco stock has increased for 10 out of the last 12 sessions and has climbed 33% so far this year vs. the S&P 500's 17.8% increase.
Analysts' estimate for fiscal 2024 and 2025 profits are each for 10% increases. Costco holds a 5 out of 99 possible IBD Earnings Stability factor. A lower number represents more stable profits over the last three to five years.
Netflix Stock Tests Buy Point
Netflix stock reached the 697.49 buy point of a late stage cup base Tuesday. The streaming video company tapped the buy point Wednesday, but the breakout faded a bit. Investors should note that late-stage base breakouts have a higher tendency to fail than earlier stage breakouts. The stock's recent performance looks similar to Costco's in that it has climbed for 10 out of 12 sessions and overtook its 50-day line on its ascent from the bottom of the base.
Shares have gained 43% so far this year and have outperformed Costco stock.
Netflix's earnings growth has improved since its decline in 2022, with 2024 profit expected to grow 59% then 20% in 2025. Sales growth is projected in the 12% to 14% range over the next four quarters. Netflix holds 98 Composite and Earnings Per Share Ratings.
Birkenstock In Buy Zone
Birkenstock is in a 5% buy range up to 64.92 from a flat base with a 61.83 buy point.
The stock holds a 93 Relative Strength Rating and has climbed about 37% from its Oct. 11 initial offering price of 46 a share.
The company has had some volatile quarterly earnings results. But its fiscal 2024 profit is forecast to rise 83% then 36% in fiscal 2025. Its sales growth has been robust, with a range of 26% to 49% over the last four quarters. Revenue projections show a tempering to 16% to 19% growth over the next four quarters.
The sandal and footwear maker reports its fiscal third-quarter earnings results on Aug. 29 before the market opens.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
