While the market indexes remain volatile, 25 companies from a broad range of sectors earn a spot on the IBD Breakout Stocks Index. Vertex Pharmaceuticals, AbbVie and McKesson make the cut among medical stocks. KO stock, CNC and WWE show the breadth of the list.
Coca-Cola and PepsiCo represent the food and beverage industry, while Li Auto and World Wrestling Entertainment are among the more diverse plays.
Nine of the 25 names on the IBD Breakout Stocks Index (updated weekly) hail from Big Pharma, biotech and other medical sectors. Divided into 14 different industry groups, the medical sector ranks No. 13 among the 33 sectors IBD tracks.
In addition to Vertex, AbbVie and McKesson, UnitedHealth, Centene, Johnson & Johnson and GSK make the grade. Harmony Biosciences and United Therapeutics, featured on June 22, also join this stock screen.
Including PepsiCo and KO stock, eight companies on the IBD Breakout Stocks Index come from the food and nonalcoholic beverage sector, which ranks No. 4 among the 33 groupings IBD tracks. Cereal kings General Mills and Post, featured on June 29, have also popped onto the list.
Chef's Warehouse, Flowers Foods and MGP Ingredients also cooked up a spot on this screen.
Although the medical and food & beverage sectors dominate, Chinese electric-vehicle maker Li Auto, now extended from an earlier buy point, has also pulled into a spot on the list. WWE stock, highlighted on June 13, has wrestled its way into the ring, jumping back above its 50-day line.
KO Stock Finding The Fizz As CHEF, LI, VRTX Lead
The new uptrend that began last month has already come under pressure, but the market indexes managed to rally on Wednesday.
Showing it can take the heat of the kitchen, CHEF stock continues to spice up the breakout move it launched on June 24 in big volume. Vertex has shown resilience as it touches a new high and remains well above its 50-day moving average.
PepsiCo and KO stock dipped below that benchmark, but closed Tuesday's session right at those moving averages as they continue to work on new chart patterns. Both soft drink giants rose Wednesday.
Similarly, WWE stock reversed higher Tuesday, poking its head just a hair above its 50-day line, then fought to a more than 2% gain today.
While LI stock trades well above its 50-day moving average, that line remains below the longer-term 200-day line. Although that's normally a sign of technical weakness, the stock has been acting strong in the past several weeks. Li Auto rose over 6% Tuesday in good volume. While down Wednesday, the 21-day and 50-day moving averages for LI stock continue to rise.
As these and other stocks — such as MCK, ABBV, POST, GIS and International Money Express — test support and buy zones, you should monitor the major market indexes.
Since most stocks mirror the moves in the S&P, Nasdaq and Dow, continued turbulence is to be expected unless the general market can solidify its nascent uptrend.
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 essentially invest in the entire index in addition to or rather than buying the individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
