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Investors Business Daily
Investors Business Daily
Business
SCOTT LEHTONEN

IBD Screen Of The Day: AI Stock Credo Leads These Global Leaders Near Buy Points

Artificial intelligence leader Credo — along with AI stock Eaton and Flex — headline Wednesday's Screen Of The Day, a column crafted from the IBD Stock Screener.

Wednesday's picks come from Investor's Business Daily's Global Leaders screen, which identifies top-growth stocks around the world that trade in the U.S.

AI Stock Above Buy Point

Credo's products speed up communications among racks of computer servers and storage devices packed into data centers. Among its products are active electrical cables. These cables connect computer servers to networking equipment such as switches or routers.

Following a bullish rebound since early September, Credo stock broke out above a 36.80 buy point in a cup base, according to IBD MarketSurge analysis. The 5% buy area ran up to 38.64, so shares are slightly extended. The AI stock fell more than 1% midday Wednesday.

On Sept. 4. the company reported earnings of four cents per share, improving from a loss of three cents last year. Further, revenue leapt 70% to $59.7 million.

Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day

Eaton Stock Below Entry

Ireland-based Eaton bills itself on its website as an "intelligent power management company." It provides parts and systems to virtually every market including aerospace, construction, food and beverage, mining, oil and gas and others.

Eaton could be considered another AI stock. The surge in generative AI is sparking a sharp increase in power requirements. That could be a boon for Eaton's power management tools. The company also offers development tools as well as AI and machine learning algorithms for cloud and on-premise applications.

Eaton stock is trying to break out above a consolidation with a 345.19 buy point. But shares dipped 0.3% Wednesday, threatening to extend a losing streak to four sessions.

A potential flaw is the stock's lagging relative strength line. It remains squarely off its new highs despite the recent breakout attempt. The RS line measures a stock's price performance vs. the S&P 500 and should hit a new high during the breakout move.

Up next, Eaton will report earnings on sales on Oct. 31. Wall Street expects the company to earn $2.80 per share on sales of $6.37 billion.

Outside AI Stocks: Flex Hits Resistance

Finally, electronics contract manufacturer Flex is right at a 34.12 buy point in a choppy base following a Sept. 26 breakout move. The 5% buy zone runs up to 35.83.

The company will report earnings on Oct. 30. Wall Street expects the company to earn 56 cents per share on revenue of $6.53 million.

Flex shares dropped 0.5% Wednesday.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on AI stocks, other best stocks to buy and watch and the Dow Jones Industrial Average.

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