Amazon.com, Spotify Technology and Arista Networks are among 40 growth companies on Monday's IBD Screen Of The Day list. Amazon stock is climbing in a base while the other names are in buy zones.
Monday's screen is Stocks Funds are Buying and is found on the IBD Stock Screener. All three stocks are leaders in their industries, have robust profit estimates and bullish charts.
Amazon Stock Nears Buy Point
Amazon stock is in a V-shaped cup base with a 201.20 buy point, according to MarketSurge pattern recognition. The Magnificent Seven stock is climbing back after its nearly 8.8% plunge in heavy volume following its second-quarter earnings report on Aug. 1. The e-commerce giant reclaimed its 50-day moving average in mid-September.
Mutual funds have added Amazon stock for the last eight quarters, with 7,950 owning shares in June, up from 7,812 in March and 7,503 in December.
The Dow Jones member holds an Accumulation/Distribution Rating of B, indicating moderate institutional buying over the last 13 weeks. Profit estimates show a hefty 63% increase in 2024 and 24% in 2025.
Spotify Reaches A Buy Zone
Spotify is in the 5% buy zone up to 377.35 of an undefined base with a 359.38 buy point. The SwingTrader stock reached a 52-week high Monday and is closing in on its all time-high of 387.44 set in February 2021.
The company is in a huge turnaround and expected to post $6.49 in earnings per share for 2024 and $9.21 in 2025 after seven years of losses.
Mutual funds have padded their holdings of the streaming music stock for the last six quarters, with 1,341 owning shares in June. That's up from 1,195 in March and 1,082 in December. Spotify's 1.6 Up/Down Volume Ratio shows demand for the stock over the last 50 days.
Arista Networks Stock Hits New High
Arista Networks is also in a buy zone up to 395.33 of a double-bottom-like base with a 376.50 buy point. The cloud networking software stock reached an all-time high Monday.
The stock broke out of the base on Thursday. It is on pace for its 10th straight day of gains in the last 11 trading days.
Like Spotify and Amazon stock, mutual funds also piled into Arista over the last eight quarters. A total of 2,853 owned Arista stock in June, up from 2,764 in March and 2,593 in December.
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