Dow Jones software leader Salesforce and Magnificent Seven member Nvidia headline Wednesday's IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener.
Wednesday's stocks to buy and watch come from the Rising Profit Estimates screen, which finds issues attracting higher price targets and analyst upgrades.
Other notable stocks on the screen include Chipotle Mexican Grill and Uber Technologies.
With the stock market pulling back, investors should be looking for stocks holding up the best in today's stock market. Look for leaders holding above key support levels and rebounding in strong volume.
Dow Jones Stock Boasts Big Future Growth
Dow Jones leader Salesforce is extended above the 5% buy zone from a 238.22 entry following a Nov. 30 earnings-fueled breakaway gap. On Wednesday, Salesforce stock reversed up 0.6% by afternoon trade.
On Nov. 29, Salesforce earnings jumped 51% to $2.11 per share on an adjusted basis. The San Francisco-based company also said revenue climbed 11% to $8.72 billion.
Wall Street expects Salesforce to earn $8.14 per share for fiscal year 2024, an increase of 55%, according to FactSet. Earnings are estimated to bump up an additional 8% in 2025.
Last week, Baird analyst Rob Oliver upgraded Salesforce stock to outperform from neutral.
"With current valuation near historical lows, top-line growth and expectations muted, we see upside from current levels," he said in a note to clients. "Price increases, the potential return of front office spend and crisper sales execution should drive upside."
Salesforce sells software under a subscription model. Its software helps businesses organize and handle sales operations and customer relationships. The company has expanded into marketing, e-commerce and data analytics.
Magnificent Seven Stock Nvidia
AI giant Nvidia is extended past a flat base's 505.48 buy point after a strong Jan. 8 breakout, according to IBD MarketSmith chart analysis. Nvidia stock dropped around 1% Wednesday, easing from Tuesday's record highs.
Nvidia also is on the IBD Leaderboard.
Wall Street expects Nvidia earnings to skyrocket 241% in fiscal 2024, which ends Jan. 30, to $11.37 per share. FactSet estimates call for a 69% increase in fiscal 2025.
Due to tremendous fundamentals and price action, Nvidia stock boasts a best-possible 99 IBD Composite Rating, according to IBD Stock Checkup. That makes NVDA stock one of the best stocks to buy and watch.
Learn How To Time The Market With IBD's ETF Market Strategy
Outside Dow Jones: Chipotle, Uber
Outside of Dow Jones, other top stocks to buy and watch include Chipotle and Uber.
Burrito maker Chipotle is rebounding from its 50-day line and is close to forming a flat base that has a 2,348.42 buy point. Chipotle rallied 1% Wednesday, shaking off the market weakness. Chipotle's annual earnings are expected to jump 35% in 2023, with a 21% increase this year.
Meanwhile, ride-hailing leader Uber is pulling back from its recent highs amid a successful test of the 10-week line earlier this month. Uber stock fell 1.1% midday Wednesday.
In the third quarter, reported on Nov. 7, Uber earned 10 cents per share on sales of $9.29 billion. Analysts expected Uber to post earnings of 7 cents per share on sales of $9.54 billion, according to FactSet.
Uber posted third-quarter operating income of $394 million, compared with a loss of $495 million last year. The second quarter was Uber's first ever with a profit from its ride-hailing and delivery operations.
For fiscal 2023, Uber is expected to earn $1.05 per share. That's a big reversal from 2022's $4.65 loss. Looking ahead, this year's Uber earnings are expected to jump 70%.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on Nvidia stock and the other best stocks to buy and watch and the Dow Jones Industrial Average.
