With earnings season on the horizon, several growth stocks are setting up potential new runs. Wayfair (W), Logitech (LOGI) and Medpace (MEDP) are among eight stocks that are near buy points and have just joined the IBD Breakout Stocks Index.
Based in Kazakhstan, Freedom went public in 2019 and has earned a spot on the IBD 50 list of leading growth stocks.
As a provider of brokerage services, Freedom is one of the largest retail investment companies in Central Asia and the Commonwealth of Independent States (CIS). The CIS is an association of sovereign states formed in 1991 by Russia and 11 other republics that were formerly part of the Soviet Union.
Rebounding Nasdaq Lifts Growth Stocks
After lagging the Dow Jones Industrial Average and S&P 500 in March, the Nasdaq has become more bullish in April. After three days of particularly strong gains, the tech-heavy Nasdaq took a mild breather Tuesday.
As the Nasdaq regrouped then rebounded, many leading growth stocks took the opportunity to form new chart patterns. Some are classic bases like a cup with handle or flat base. Others are less clearly defined patterns classified as “consolidations” in MarketSmith’s pattern recognition tool.
Reflecting recent stock market volatility and uncertainty, Wayfair, Medpace and Avantor have formed consolidations. Avantor is trading right around its 31.15 buy point as its relative strength line turns upward ahead of a possible breakout.
Meanwhile, boosted by 42% average sales growth over the last three years, including a 45% rise in revenue last quarter, Wayfair is flashing signs of a turnaround in profitability. Although based on prior-year quarters that showed a loss, Wayfair has delivered profitable quarters in its last three reports after posting losses in the year-ago periods. The current buy point for W stock is 369.10.
In a sign of stock market leadership, MEDP stock is testing a 177.22 buy point with its RS line just below a 52-week high. The medical research firm has posted two quarters of accelerating earnings growth.
FRHC stock is also basing after coming up off its March 2020 lows. Freedom has successfully tested support at its 10-week moving average. It’s now building a new consolidation with a 61.87 buy point.
LOGI stock and financial advisory service StepStone are both building cup-shaped patterns.
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 allows you to essentially invest in the entire index in addition to or rather than buying individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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