Tech titan Alphabet made Tuesday's IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener, after Google stock reached a key profit goal from a recent buy point.
Tuesday's stocks to buy and watch pick comes from the "Rising Profit Estimates" screen, which finds issues attracting higher price targets and analyst upgrades. In addition to GOOGL stock, the latest screen has also highlighted Chipotle Mexican Grill, Delta Air Lines and United Airlines.
Google Stock Hits Key Level
Last week, Google-parent Alphabet reached the 20%-25% profit-taking level from a 106.59 cup-with-handle buy point, according to IBD MarketSmith chart analysis. Shares rose 0.3% midday Tuesday, looking to extend a win streak to three sessions.
On April 6, Google stock broke out past the buy point, finishing in the 5% buy area that went up to 111.92. Shares treaded water for about a month, until they blasted higher on May 10. On June 7, Alphabet advanced as much as 21% past the buy point, letting investors take some hard-earned profits at the 20%-25% profit area.
On April 26, the tech titan reported first-quarter earnings and revenue that topped estimates amid one-time expenses tied to cost cutting and higher investment income. The company forecast higher capital spending in 2023, due to investments in artificial intelligence.
For 2023, GOOGL earnings are expected to rise 19% before climbing another 18% in 2024.
Amid steady fundamentals and solid price gains in recent months, Google stock shows a good-but-not-great 93 out of 99 IBD Composite Rating, according to IBD Stock Checkup.
Chipotle's Latest Entry
On April 25, Chipotle Mexican Grill delivered a major first-quarter surprise.
Chipotle earnings rocketed 84% to $10.50 per share on a 17% revenue jump to $2.36 billion. Wall Street expected Chipotle to earn $8.95 per share on 16% revenue growth to $2.34 billion. Chipotle's earnings are expected to grow 35% in 2023 and 21% in 2024.
In response, CMG stock surged nearly 13% on April 26, ending far out of the buy zone past a 1,724.71 cup-base buy point. And in mid-May, Chipotle shares reached the 20%-25% profit level.
Now, shares are trading tightly, creating another entry at 2,139.88. Meanwhile, the stock is also pulling back to its 10-week line. A decisive rebound from that level would also create a buying opportunity.
Delta Is Breaking Out Today; United Eyes Buy Point
Outside of Google stock, Delta Air Lines is breaking out past a 40.30 buy point in a cup base, with a 3% advance Tuesday. The 5% buy zone tops out at 42.32.
Delta earnings are expected to grow 75% in 2023 and another 25% in 2024.
Meanwhile, United is nearing a 55.04 buy point in a cup base. Shares are about 3% away from their latest buy point, so look for a handle to present a lower entry.
United's earnings are expected to jump 269% in 2023 before adding 16% in 2024.
Delta Air Lines and United Airlines both boast a perfect 99 IBD Composite Rating.
