From Tesla, Meta Platforms, Netflix, Airbnb, Microsoft and many more, the latest update to the IBD Breakout Stocks Index features an enticing lineup of stocks on the verge of a breakout move. Yet, the volatility in the market indexes has the bulls and bears butting heads for supremacy as Tesla stock and others try to clear resistance.
The market outlook stands at "uptrend under pressure," with the recommended exposure level at 20% to 40%. So the underlying uptrend remains intact, but investors should proceed with caution as these promising setups look to complete their bases and launch — and sustain — new climbs.
The table below highlights names on the IBD Breakout Stocks Index with a 95 or higher Composite Rating. Beyond Tesla stock, Meta, Microsoft and Neflix, the list includes a wide range of budding breakouts, showcasing the current battle between support and resistance.
See Who Joins Tesla, Meta And Two IPO Leaders On The IBD Breakout Stocks Index
Tesla Stock, Airbnb, Meta Among Stocks Near Breakout
Airbnb stock, ServiceNow, Palo Alto Networks, Shopify and Salesforce also earn a spot on this stock screen as they target new buy points. Reflecting the pressure in the market, Airbnb and ServiceNow look like they're beginning to form handles, as Shopify stock already has.
Oracle was on the verge of a breakout, but the stock gapped down in heavy volume on lackluster earnings. The sharp drop in Oracle stock only reinforces how it's best to avoid making new buys just before a company reports results.
| Company | Symbol | Price $ Chg | Comp Rating | EPS Rating | RS Rating | Ind Group RS | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|---|
| Airbnb | ABNB | -2.35 | 99 | 80 | 93 | A | A | A- |
| LPL Financial | LPLA | 1.56 | 99 | 97 | 87 | B+ | A | B |
| ServiceNow | NOW | -2.09 | 99 | 99 | 92 | A- | A | B- |
| Palo Alto Networks | PANW | 0.31 | 98 | 98 | 92 | B+ | A | B- |
| Meta Platforms | META | 3.34 | 98 | 86 | 98 | A- | B | B+ |
| Arch Capital | ACGL | 0.31 | 98 | 96 | 93 | B+ | A | A- |
| Dropbox | DBX | 0.03 | 98 | 97 | 90 | A | A | B+ |
| Salesforce | CRM | -1.45 | 97 | 98 | 93 | A- | B | B- |
| Ameriprise Financial | AMP | 0.16 | 97 | 95 | 84 | B+ | A | C- |
| Autoliv | ALV | -0.69 | 97 | 84 | 87 | C | B | B |
| Activision Blizzard | ATVI | 0.32 | 97 | 94 | 88 | B | A | B- |
| Hubbell | HUBB | 0.78 | 97 | 94 | 90 | A- | A | B |
| PINS | -0.67 | 97 | 92 | 83 | A- | B | B | |
| SPS Commerce | SPSC | -1.34 | 97 | 98 | 90 | A- | A | C+ |
| Vertex | VERX | -0.35 | 97 | 91 | 88 | A | A | B- |
| Shopify | SHOP | 0.06 | 97 | 90 | 96 | A- | C | B- |
| Tesla | TSLA | 4.32 | 96 | 93 | 91 | A- | A | B+ |
| Cintas | CTAS | -1.49 | 96 | 95 | 84 | B | A | A- |
| Trade Desk | TTD | -0.09 | 95 | 97 | 95 | D- | A | B- |
| Dorian LPG | LPG | 0.25 | 95 | 98 | 97 | B- | A | C+ |
| Microsoft | MSFT | 2.69 | 95 | 96 | 88 | A | B | C |
| Okta | OKTA | 0.24 | 95 | 81 | 90 | B+ | C | A |
| Carrier Global | CARR | -0.89 | 95 | 59 | 92 | A+ | B | C+ |
| Netflix | NFLX | 0.49 | 95 | 85 | 95 | A- | B | B |
2 IPO Stocks To Watch
Two IPO Leaders also make the IBD Breakout Stocks Index: productivity software play Monday.com and language-learning platform Duolingo.
MNDY stock is working on an early-stage consolidation with a 189.15 buy point. After dropping sharply below its 50-day line early Tuesday, Monday.com came off its lows but closed below that benchmark. The company's IPO was in June 2021.
Duolingo stock continues to form a second-stage double bottom, a common chart pattern in volatile markets. The buy point is 162.20. While Duolingo and Monday.com both made the IBD Breakout Stocks Index, they do not appear on the table above. At 91 and 90, respectively, their Composite Ratings don't meet the 95 minimum for the screen. But the clear rise in the relative strength line for Duolingo shows market leadership. Duolingo went public in July 2021.
Clues To Watch For Tesla Stock, Meta, Other Budding Breakouts
As you scan this list of stocks to buy and watch in this pressured but promising market, be sure to check the volume around key areas of support and resistance, such as buy points and the 50-day moving average.
Breakout points present a prime example of the importance of volume. To confirm demand for a new run, look for heavy volume at the time of a breakout. On the other hand, weak volume can indicate hesitation and uncertainty. Ideally, the relative strength line will be at or near a 52-week high as a stock launches a new move.
So when evaluating the performance of Tesla, Netflix, Microsoft, Monday.com, Meta stock and others, consider how those factors for when to buy stocks come into play.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
