Meta stock — along with Magnificent Seven member Alphabet and Dow Jones stock Travelers — 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 Stocks Funds Are Buying screen. This screen identifies stocks in which big mutual funds are increasing their positions.
Meta Stock Holds Earnings Gains
Meta Platforms is far extended from its 312.87 cup-with-handle entry following an early-October breakout move, according to IBD MarketSmith chart analysis. Shares of Meta stock rallied 1.8% midday Wednesday.
On Feb. 2, Meta stock soared more than 20%. And it is holding those gains, sitting just 4% away from its 52-week high. Meanwhile, the relative strength line continues to hold tight after hitting new highs.
Meta stock is on IBD Leaderboard. In its latest quarterly report, Meta reported better-than-expected earnings for the fourth quarter and announced plans for its first-ever dividend.
The company said it earned $5.33 per share on sales of $40.1 billion for the December-ending quarter. Analysts projected the company would post earnings of $4.82 per share on $39.1 billion in sales, according to FactSet.
Sales for the quarter increased 25% year over year, while earnings increased 203%.
Further, Meta said it is initiating a dividend of 50 cents per share of common stock, payable on March 26 to shareholders on record as of Feb. 22.
Magnificent Seven Stock Alphabet Holds Key Level
Magnificent Seven stock Alphabet dropped 0.5% midday Tuesday, at the top of the buy range past a 139.42 buy point in a cup with handle. Meta stock is also in the Magnificent Seven.
Alphabet shares are pausing after their recent rebound from the key 50-day moving average line. Since a Dec. 20 breakout, the 50-day line has acted as a support level for the tech giant.
On Jan. 31, the Google parent reported fourth-quarter earnings and revenue that topped analyst estimates.
But Google stock tumbled 7.5% as the core advertising business slightly missed views amid worries over how the rise of generative artificial intelligence will impact internet search.
Funds Pile Into Dow Jones Stock Travelers
Outside of Meta stock, Dow Jones stock Travelers hit a new high Wednesday at 218.11, further above a 194.51 buy point in a cup base. The 5% buy area ran up to 204.24.
On Jan. 19, the insurance giant delivered earnings of $7.01 per share, a 106% jump and well above views for $5.07. Revenue rose 13% to $10.93 billion, also topping the $9.99 billion target.
The earnings upturn snapped a six-quarter losing streak, although revenue growth had shown modest acceleration over those quarters.
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