With Donald Trump defeating Kamala Harris in the 2024 election, Nvidia has just won big in its campaign for a new breakout. Now Alphabet is making a run of its own as both artificial intelligence powerhouses join a crop of other names on the IBD Breakout Stocks Index.
And as Nvidia stock jumps into buy range to hit a record high and Google stock takes aim at a new buy point, long-suffering Zoom Video Communications sparks a budding rebound.
Nvidia, Google Headline IBD Breakout Stocks Index
Updated weekly, the IBD Breakout Stocks Index forms the foundation of the IBD Breakout Opportunities ETF from Innovator Capital. With a single trade, the BOUT ETF lets investors own a piece of each featured company.
After rising nearly 3% on the eve of the election, Nvidia stock retook its 140.76 buy point on Wednesday. Still within buy range, it trades 4% above that entry. But note that it's a later-stage consolidation and the company is set to report earnings on Nov. 20.
Alphabet, which reported Q3 numbers on Oct. 29, remains in recovery mode. Google stock initially gapped up in heavy volume as "AI Overviews" boosted search advertising. But it soon — and sharply — retreated. Yet, Google remains above its 21-day exponential moving average and 50-day line. It rose nearly 4% Wednesday as it continues to form a handle to offer a 182.02 entry.
In addition to Magnificent Seven stocks Nvidia and Google, several other names on the IBD Breakout Stocks Index are in or near a buy range.
Block, Dynatrace and Datadog all fit that bill. Block spiked over 7% Wednesday as it gets set to report earnings on Thursday.
Alkami Technology and Equitable were in that camp as of last night's close, but both have popped out of buy range on the election results.
Nu Holdings — the Oct. 28 IBD Stock Of The Day — is another stock to watch. It has retreated below a 15.16 buy point, but has bounced off its 50-day line. Warren Buffett has a position in the bank, which has 105 million customers across Brazil, Mexico and Colombia.
See Who Joins Nvidia, Google On The IBD Breakout Stocks Index
Covid-Era Phenom Zoom Stock Awakens
In 2020, the Covid pandemic changed how and where we work, on a global scale. Remote work flourished, thrusting Zoom into the limelight.
Having launched its IPO in April of 2019, Zoom stock quickly soared. Demand took off as millions of people stopped commuting to the office and began "Zooming in" from home.
But by October of 2020, the party ended. Earnings growth took a nosedive. From 483% and 854% EPS gains in fiscal years 2020 and 2021 respectively, the company's year-over-year profit declined 14% in fiscal 2023. That triggered a severe slide in Zoom stock.
But the former Wall Street darling has found a bottom — and a new breakout.
From late December 2023 until October, Zoom stock formed a first-stage cup with handle. The buy point was 72.36. The stock cleared that entry Oct. 22 in light volume. Zoom continues to blast out of buy range and is now extended. See if it can build on its newfound momentum.
The company is set to report fiscal third-quarter numbers on Nov. 25. Analysts expect 2% revenue growth to $1.17 billion and earnings growth of 1% to $1.31 per share. For the full fiscal year, Wall Street recently raised its consensus forecast to a 2% gain to $5.33 a share.
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.
