Amazon stock, Coinbase Global and Chipotle Mexican Grill found themselves on the list of Stocks Funds Are Buying at the IBD Stock Screener. Three stocks selected from today's screen are in bases or buy zones and have strong fundamentals.
Forty stocks are in the screen, which flags stocks in which mutual funds are bolstering their positions. This is a positive element for stocks.
Amazon Stock Readies For Next Move
Amazon.com is in a cup base with a 191.70 buy point. The IBD SwingTrader stock reclaimed its 50-day moving average on June 20, following news that Amazon's Bedrock service will use Anthropic's newest artificial intelligence model, Claude 3.5 Sonnet. Amazon stock, a Magnificent Seven name, is within 3% of the buy point.
On Tuesday, Amazon announced its 10th Prime Day will be July 16-17.
The e-commerce giant topped first-quarter earnings and sales estimates on April 30. Its quarterly earnings per share tripled vs. the prior year's quarter, while sales grew 13%. Full-year profit forecasts are for 76% growth and a 25% increase in 2025.
Mutual funds keep adding Amazon stock, with 7,680 funds owning shares in March, up from 7,426 in December and 7,227 in September. Fidelity Contrafund (FCNTX) is one of its best-known shareholders and held 48.16 million shares in March, while JPMorgan Large Cap Growth Fund (SEEGX) owned 33.52 million shares.
Bitcoin Exchange Operator Tries To Recover
Besides Amazon stock, Coinbase Global is in late-stage base with a 283.48 buy point. An early entry that resembles a handle is at 263.80.
The cryptocurrency exchange started selling off in mid-June in sympathy with the drop in bitcoin prices and undercut its 50-day line Friday. Shares rebounded 4.4% Tuesday with a rise in bitcoin, although in light volume, and remained about 2% below the 50-day line.
On May 2 the company reported earnings of $4.40 per share, up from a loss of 34 cents in the prior year's same quarter. Meanwhile, revenue jumped to $1.64 billion, or 112% year over year.
Full-year earnings per share are expected to jump to $6.94, from 37 cents in 2023.
As of March, 1,201 funds owned Coinbase shares, up from 1,035 in December and 885 in September. Fidelity Contrafund owned 410,000 shares in March.
Chipotle Jumps Ahead Of Massive Stock Split
Chipotle Mexican Grill hit a milestone with its first stock split in its history and one of the biggest splits ever on the New York Stock Exchange. The 50-for-1 stock split takes effect Wednesday before the open.
Chipotle gained 2.8% Tuesday and closed at a lofty price of 3,283.04. The stock has climbed 43% so far this year.
The stock broke out of its last true base in November with a 2,175.01 buy point. Recent activity shows a flattish consolidation with a 3,260 entry, prior to the split.
Chipotle's earnings growth has averaged around 27% over the last four quarters, while revenue growth has averaged around 14%.
Chipotle ranks No. 1 out of 54 stocks in the restaurants industry group, which is No. 15 out of the 197 IBD industry groups.
Nearly 2,500 funds owned Chipotle shares in March, up from 2,384 in December and 2,302 in September.
The stock holds a perfect 99 Composite Rating and a stellar 98 Earnings Per Share Rating.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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