While not without its challenges, the current bull market has lifted growth stocks like Nvidia, Palantir Technologies and Advanced Micro Devices to new heights. Meanwhile, three IPO Leaders — On Holding, Duolingo and Procore Technologies — sail into choppy waters.
Each of these companies and a slew of others make this week's update of the IBD Breakout Stocks Index.
The list includes Palantir and five other names from the enterprise software industry group, which continues to see strong demand from the boom in artificial intelligence. Joining PLTR stock are Salesforce.com, Workday, SAP, Okta and JFrog. JFrog and SAP were both featured in this column earlier this year.
AppFolio, which hails from the specialty enterprise software group, also earns a spot among these breakout stocks.
On Wednesday, Palantir popped on news it landed a U.S. Army contract for TITAN, a battlefield system using artificial intelligence. Closing near the top of its buy range, shares of PLTR stock rose nearly 10% in massive volume.
Further, homebuilders Lennar, Toll Brothers and Dream Finders Homes also make the cut.
While these homebuilders continue to trade in or beyond their buy zones, top AI stocks Nvidia and Palantir remain extended. But the Nasdaq's recent choppiness offers a reminder to investors to stay vigilant.
A heavy-volume pullback in Workday — as well as pressure on JFrog, Salesforce and others — reinforce that call for caution. Such action is a good reminder for investors to review the eight "secrets" for when to sell stocks, particularly highfliers like Nvidia and Palantir.
See Who Joins Nvidia, Palantir, AMD On The IBD Breakout Stocks Index
ETF With Palantir, Nvidia Stock And More Tests Top Of Buy Range
The Innovator IBD Breakout Opportunities exchange traded fund seeks results corresponding to the IBD Breakout Stocks Index. So with one trade, investors can participate in the moves of Nvidia, Palantir, Salesforce, On Holding stock and the others currently featured on the Breakout Opportunities ETF, which gets updated weekly.
Recent action in the Breakout Opportunities ETF itself reflects the challenges and opportunities of this current bull market uptrend. The ETF formed and broke out of a cup with handle early last month. Since then its has shown resilience by pulling back to and finding support at its 50-day line and 21-day exponential moving average. The BOUT ETF closed Wednesday's session at the very top of its buy range.
Shares of On Holding, the Swiss maker of popular running shoes, have pulled back after clearing a 33.34 buy point in a cup with handle. Shares of ONON dipped again Wednesday, but bounced off its rising 21-day line. The 2021 IPO is warming up to report earnings on March 12.
Procore bounced back into buy range Wednesday, holding support at its 21-day moving average. Duolingo remains above its 50-day line as the 21-day moving average starts to poke back above the longer-term 50-day benchmark — a sign of improving technical strength.
Shares of Nvidia stock continue to buck recent pressure on the market indexes. The AI chip leader has just posted yet another record high with a gain of over 3% Wednesday.
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 buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
