Netflix stock along with Taiwan Semiconductor Manufacturing, which makes chips for Nvidia, along with Amazon, headline Tuesday's Screen Of The Day from Investor's Business Daily, a column that focuses on top ideas in the IBD Stock Screener.
Tuesday's picks come from the Stocks Funds Are Buying screen, which finds issues that mutual funds are buying.
Nvidia Chipmaker Set To Report Earnings
Taiwan Semiconductor, better known as TSMC, is the world's largest chip foundry. Its vast array of customers includes Apple, Nvidia, Advanced Micro Devices, Qualcomm and Broadcom.
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TSMC's earnings report is due out early Thursday. Wall Street expects the company to earn $1.41 per share on revenue of $20.3 billion, per IBD MarketSurge. That represents year-over-year growth of 25% and 31%, respectively.
Last week, shares rallied to new highs after the company reported strong sales for the month of June. TSMC stock is around 25% above a 148.43 double-bottom entry. Investors can take some gains off the table at the 20%-25% profit level, especially ahead of this week's earnings report.
Shares of the Nvidia chipmaker rose 0.4% midday Tuesday.
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Netflix Stock Eyes Support
Streaming giant Netflix is trying to find support at its pivotal 50-day moving average line ahead of the company's second-quarter earnings report, due out late Thursday. The firm is expected to earn $4.74 a share on sales of $9.5 billion.
Meanwhile, Netflix stock is also testing its 639 buy point in a cup base following a May 20 breakout move. The stock is in a buy zone from that entry, but it carries extra risk from the impending earnings announcement. Investors should typically hold a decent profit cushion heading into an earnings report.
Netflix stock moved down 0.4% midday Tuesday.
Outside Netflix Stock: Amazon Prime Day
Shoppers are expected to spend about $14 billion during Amazon's Prime Day shopping event that kicked off Tuesday, according to estimates from Adobe Analytics. The discount shopping event is expected to drive $7.1 billion in U.S. spending on its first day and $6.9 billion on its second day. The roughly $14 billion in spending would mark a 10.5% increase from the event last year.
Amazon shares moved up 0.3% midday Tuesday, in buy range above a flat base's 191.70 buy point, per MarketSurge. The 5% buy area runs up to 201.29.
Amazon stock is on IBD's Leaderboard.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on Arm stock, other best stocks to buy and watch and the Dow Jones Industrial Average.
