A quick way to find top growth stocks is with the IBD Stock Screener. From that tool, the Stocks Funds are Buying screen identified several top-performing names, including artificial intelligence (AI) stock Microsoft and Meta Platforms.
IBD 50 AI stock Snowflake and Qualcomm also topped the list of 55 stocks in the screen, which finds stocks in which top funds are increasing their stakes.
Microsoft stock bounced off its 10-week moving average of 395.56 last week, and is in a 5% buy range reaching to 415.34. Previously, shares broke out of a flat base on Jan. 11, according to MarketSmith pattern recognition.
The Magnificent Seven stock peaked shortly after Microsoft reported higher-than-expected December-ended quarterly earnings and sales but gave a soft current-quarter revenue range on Jan. 30. Microsoft stock is trading around its 21-day exponential moving average and seeking support.
Mutual funds have been adding shares, with 10,096 owning the artificial intelligence stock in December, up from 10,013 in September and 9,846 in June. Microsoft stock is on IBD SwingTrader.
Meta Stock Offers Another Buy Point
Meta Platforms stock is in a buy range up to 503.28 from a bullish three-weeks-tight pattern with a 488.62 entry. These patterns are best used to add to an existing position.
Facebook parent Meta gapped up 20.3% in huge volume on Feb. 2, after the social media platform's fourth-quarter revenue and profit numbers blew past estimates.
Quarterly earnings growth has exploded, with a 203% increase over last year's Q4, following gains of 31% and 168% in the prior two periods. Sales growth accelerated to 25% from 3% three quarters ago.
Mutual funds have bolstered their positions of the IBD 50 stock, with 5,524 holding Meta stock in December, up from 5,414 in September and 5,140 in June. Meta stock is on IBD Leaderboard. Meta has a B Sponsorship Rating.
AI Stock Snowflake Sets Up Ahead Of Earnings
Snowflake stock also has formed a three-weeks-tight pattern, this one with a 237.72 buy point. Shares broke out of a prior flat base with a 202.83 entry on Jan. 23 and are extended from there, but still near the three-weeks-tight entry.
Snowflake has shown tremendous quarterly earnings growth, spiking 127% in it latest quarter on 32% sales growth. The company reports its January-ended quarterly earnings Wednesday after the market close.
Snowflake develops data analytics and management software that runs on the cloud-computing platforms of Amazon.com, Microsoft and Alphabet's Google.
The number of funds holding the AI stock rose to 1,768 in December from 1,670 in September.
Qualcomm is trying to break out of a flat base with a 157.98 buy point. The stock recovered after dipping below its 10-week line following Qualcomm's December-quarter earnings report on Jan. 30. The company's profits and sales rose, snapping a string of four declining quarters.
Mutual funds have padded their positions of the communications-chip stock, with 3,879 holding Qualcomm stock in December, up from 3,774 in September.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
