Investors have been infatuated with Magnificent Seven stocks like Nvidia and Tesla. But Arista Networks, GE Aerospace, Spotify Technology and Interactive Brokers are among a cluster of promising names clearing entries.
Stocks rallied with aplomb following the Fed's bumper rate cut last week, and it is a good time to buy stocks. Here are a group of stocks with good fundamental and technical performance worth considering.
Alternative To Nvidia? Arista Breaks Out
Arista Networks is clearing a consolidation entry with an ideal buy point of 376.50, according to MarketSurge pattern recognition. It ended last week with a gain of 7% and is up 0.9% so far this week.
Its relative strength line is spiking higher. This gauges a stock's performance vs. the benchmark S&P 500 index.
Arista stock holds an IBD Composite Rating of 98 out of 99. It has rallied nearly 65% so far in 2024. But earnings are its strongest suit, with its EPS Rating sitting at a stellar 98.
Arista sells computer network switches that speed up communications in internet data centers. Its biggest customers include Microsoft, Facebook parent Meta Platforms and Oracle.
GE Aerospace Stock
GE Aerospace stock found support at its 50-day moving average and is near the top of the 5% buy zone above a new consolidation entry of 177.20. It ended the last week with a 5.1% gain but has slipped 1% week-to-date.
This is a first-stage pattern, MarketSurge analysis shows. IBD research has found that early-stage bases are more likely to net good gains for investors.
Strong overall performance is reflected in GE Aerospace's perfect IBD Composite Rating of 99. GE stock has spiked more than 82% so far this year.
The firm rose from the ashes of the old General Electric conglomerate. Considered its "crown jewel," it designs and makes jet engines and aviation systems. It also operates an aftermarket business for engine repair, maintenance and other services.
Spotify Stock
Spotify stock is clearing the 5% buy zone from a 359.38 entry. The relative strength line has just reached fresh heights on its weekly chart. This is a bullish sign. It rallied an impressive 8.1% last week and is up another 3.7% this week.
Earnings are solid for Spotify. It is up almost 102% year-to-date and looks poised to add to that.
An analyst recently raised his price target on the music streamer to the highest on Wall Street. Pivotal Research Group's Jeffrey Wlodarczak upped his price target to 510 from 460 and reiterated his buy rating.
Spotify's streaming rivals include big guns such as Apple, Amazon.com and Alphabet.
Interactive Brokers Stock
Interactive Brokers stock has cleared a consolidation buy point of 129 and clearing the top of the buy zone. It managed to nail down a 3.9% last week and is up 2.9% week-to-date.
The stock has a perfect IBD Composite Rating of 99. Both price and earnings performance are strong.
Interactive Brokers is up almost 65% so far this year. Earnings popped 33% in the most recent quarter and have grown by an average of 24% over the past three quarters.
Founded in 1978, the Greenwich, Conn., company operates the largest electronic trading platform in the U.S. by number of daily average revenue trades.
Shift4 Stock
Shift4 stock is in the 5% buy zone above a cup-with-handle entry of 83.64. The relative strength line is gaining traction, a good sign. FOUR stock popped 4.8% last week but has slipped 1% so far this week.
Overall performance is very good, with its IBD Composite Rating sitting at 96. Key to this is earnings performance, with EPS rising an average of 32% over the past three quarters.
Earnings are expected to ramp up 32% in 2024 before slowing to a still impressive 28% next year.
The payment processing services provider is a member of the IBD Sector Leaders list. This is Investor's Business Daily's most stringent and powerful screen.
Monday.com Stock
Monday.com climbed above an alternate buy point at 272.77 last Thursday. It closed the week with a muscular gain of 9.6% but has given up 2% so far this week.
The stock previously got support at the 50-day moving average. Its RS line remains near highs but is slipping slightly.
Big Money has been snapping up the stock of late, which is reflected in its Accumulation/Distribution Rating of A-. In total, an outstanding 91% of shares are held by funds.
The enterprise software firm is seeing strong growth in adoption of its workflow automation and productivity platform. EPS is seen rising 53% this year before slowing to 18% growth in 2025.
Market In Power Trend; AI Chip Plays Shrug Off Super Micro Dive
Broadcom Stock
The chip stock rallied 3.9% Sept. 19, which helped it nail down a weekly gain of 2%. Week-to-date it has jumped a further 4.3%. It previously offered an early entry as it topped a trendline and cleared the 50-day line.
Shares pulled back on Sept. 16, but Friday's high of 168.08 could be used for an aggressive entry. The 5% buy zone here tops out at 176.48. Its short-term high of 172.42 serves as another alternative buy point, with its actionable zone running up to 181.04.
Excellent all-around performance is reflected in Broadcom's perfect IBD Composite Rating of 99.
Broadcom serves as an alternative artificial intelligence play for those who believe Nvidia stock is too richly valued.
The company is a leader in custom chips that companies need to implement all the power that AI brings to data centers, networks and connected devices such as smartphones.
Magnificent Seven: Don't Forget Nvidia
Meanwhile, Nvidia stock itself has retaken its 50-day moving average, which could be used as an entry. It looks to be overcoming resistance here.
The stock is also rising towards an alternative entry of 131.26. Shares have also formed a consolidation with a higher ideal buy point of 140.76.
Nvidia stock has rallied from recent lows. While it popped 4% last Thursday it ended the week down 2.6%. This week it has rallied by nearly 7% though.
But while it is off its 2024 highs, Nvidia remains up 150% for the year so far.
Its gains have been fueled by buzz over its artificial intelligence chips. It was recently revealed that Salesforce will collaborate with the company to build "autonomous agent experiences" through AI on Salesforce's platform. This is just the latest in a slew of deals.
It is a member of the IBD Leaderboard group of stocks. It has also won a spot on SwingTrader.
Last Thursday was also a good day for the Magnificent Seven. The Roundhill Magnificent Seven ETF rallied 3.7% for its best day since Feb. 22. This helped it to a 2.8% for the week.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
