September got off to a bad start as the Nasdaq sank below its 50-day moving average and IBD's recommended market exposure dropped. Market bellwether Nvidia has held support above 100 per share, but remains in the doghouse below its key moving averages. Meanwhile, fresh dog food maker Freshpet lands a spot on IBD Leaderboard alongside Nvidia stock as it sniffs out a new buy zone.
Investors Wag Their Tails For Freshpet; Nvidia Spanked
In addition to earning a spot on the IBD 50 list of top growth stocks, Freshpet was profiled in the IBD New America on Aug. 23. On Aug. 5, Freshpet posted a surprise profit of $18.6 million for the first quarter, smashing expectations for a $10.6 million loss.
While neither Freshpet nor Nvidia made the latest list of new buys by the best mutual funds, 31 funds with an A+ or A rating from IBD own shares of Freshpet. Plus, Freshpet earns passing scores for all measures in the Supply And Demand section of IBD Stock Checkup. That includes an A- Accumulation/Distribution Rating and 1.3 up/down volume ratio.
With a 94 Composite Rating, Freshpet is top dog among all stocks in the packaged food group, which ranks No. 41 among the 197 industries IBD tracks.
Nvidia, on the other hand, has seen its once-perfect 99 Composite Rating fall to an 87. According to MarketSurge, Nvidia's fabless semiconductor group's ranking has plummeted from No. 2 out of 197 three months ago to No. 120. Fidelity and other giant investors have been unloading shares of Nvidia. Yet, as Nvidia tries to find its footing and rebound, one Morgan Stanley analyst says concerns over Nvidia's gross margins are overblown.
Freshpet Stock Back In Buy Range
Featured as the IBD Stock Of The Day on Sept. 3, Freshpet stock is back above the 136.35 buy point it initially cleared on Aug. 23. The breakout came from a second-stage consolidation. That's a positive since early stage bases are more likely to post good gains.
Showing resilience in a volatile market, Freshpet drifted sideways after breaking out, finding support at its 21-day exponential moving average. In a sign of market leadership, its relative strength line trades right around a 52-week high. Freshpet held tough again on Monday, managing to hold a 1% gain and close in buy range.
Nvidia's relative strength line has slumped since late August. On Monday, Nvidia stock rose over 3% but remains 10% below its 50-day line.
