Microsoft stock — along with Alphabet and breakout stocks KKR and Snowflake — headline Tuesday's IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener.
Tuesday's stocks to buy and watch come from the Stocks Funds Are Buying screen. This screen identifies stocks in which big mutual funds are increasing their positions.
Microsoft Stock Extended Ahead Of Earnings
Microsoft is extended above a 384.30 flat-base entry following a Jan. 11. breakout, according to IBD MarketSmith chart analysis. Shares fell 0.3% in afternoon trade Tuesday, reversing lower after new highs.
Microsoft earnings are due out after the close. Further, Wall Street expects the Dow Jones tech titan to earn $2.77 per share on revenue of $61.1 billion, year-over-year increases of 19% and 16%, respectively.
Magnificent Seven Stock Alphabet Set To Report
Magnificent Seven stock Alphabet dropped 1% midday Tuesday, but is still extended past a 139.42 buy point in a cup with handle.
Analysts expect the Google parent's earnings to rise 52% to $1.59 per share when it reports earnings later in the day, per FactSet estimates. Wall Street sees sales climbing 12% to $85.3 billion.
As usual, Alphabet isn't expected to offer profit or revenue guidance for Google stock when it reports earnings on Tuesday. So analysts focused on the 2024 outlook for shares will crunch fourth-quarter trends as well as management commentary on generative artificial intelligence, cloud computing, capital spending and the core digital advertising business.
Funds Pile Into KKR, Snowflake
Outside of Microsoft stock, IBD SwingTrader stock KKR broke out past an 85.66 flat-base entry with a 1.6% rally Friday. Shares rose 0.9% Tuesday midday, as they moved further above the entry. The 5% buy area runs up to 89.94.
The global investment company offers alternative asset management, capital markets and insurance solutions. Analysts expect the company to swing back to profitability in 2023, earning $3.34 a share before turning in earnings growth of 46% in 2024 to $4.89 a share.
Snowflake is in buy range past a 202.83 buy point in a flat base following Monday's bullish 3.5% move. The 5% buy range tops out at 212.97. Snowflake shares declined 1.8% midday Tuesday.
Snowflake sells data analytics software that runs on cloud-computing platforms. Also, the company has evolved into a cloud data-management software provider. Amazon Web Services, the cloud business of Amazon, is a key Snowflake partner via Snowflake software on AWS computer servers.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
