Nvidia stock and fellow Magnificent Seven member Amazon headline Wednesday's IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener.
Wednesday's stocks to buy and watch come from the Rising Profit Estimates screen, which finds issues attracting higher price targets and analyst upgrades.
Other notable stocks on the screen include Okta, Snowflake and Workday.
With the stock market rally at new highs, investors should be looking for new breakouts. While stocks breaking out of bases can materially outperform in the early stages of a new uptrend, breakouts from bases can struggle after an extended run for the market.
Nvidia Stock In Buy Range
On Nov. 28, Nvidia expanded its push into artificial intelligence. It unveiled business intelligence for chatbots, co-pilots and summarization tools with its enterprise-grade generative AI microservice.
NeMo Retriever — a new offering in the Nvidia NeMo family of frameworks and tools for generative AI models — helps organizations enhance their generative AI applications. NeMo Retriever helps generative AI applications provide more accurate responses through Nvidia-optimized algorithms.
The AI giant is in buy range from a double bottom's 476.09 buy point after finding support at the 50-day moving average earlier this month, according to IBD MarketSmith chart analysis. The 5% buy area runs up to 499.89. Nvidia stock rose 0.3% Wednesday.
Nvidia stock is on the IBD Leaderboard.
Wall Street expects Nvidia earnings to skyrocket 236% in fiscal 2024, which ends Jan. 30, to $12.26 per share. FactSet estimates call for a 67% increase in fiscal 2025.
Due to tremendous fundamentals and price action, Nvidia stock boasts a best-possible 99 IBD Composite Rating, according to IBD Stock Checkup. That makes NVDA stock one of the best stocks to buy and watch.
Magnificent Seven Stock Amazon
Amazon is barely out of its buy range above a cup base's 145.86 buy point. The 5% buy area went up to 153.15. Shares fell less than 0.1% Wednesday, just off last week's 52-week high price.
Amazon stock is an IBD SwingTrader idea.
Through its Amazon Bedrock platform, the e-commerce and cloud giant provides a fully managed service offering a choice of high-performing foundation models from leading AI companies like AI21 Labs, Anthropic, Cohere, Meta and Stability AI.
After losing 27 cents per share in 2022, the e-commerce giant is expected to swing back to a $2.68 profit in 2023. Analysts expect Amazon's earnings to jump 42% in 2024.
Learn How To Time The Market With IBD's ETF Market Strategy
Notable Names Outside Nvidia Stock: Okta
Outside of Nvidia stock, other top stocks to buy and watch include Okta, Snowflake and Workday.
Cybersecurity leader Okta is trying to break out past a 90.73 buy point in a big double bottom that stretches back to late May. Shares fell 1.1% Wednesday, closing just below their latest entry.
In late November, Okta reported third-quarter earnings and revenue that topped analyst estimates. But the cybersecurity firm issued mixed fiscal 2025 guidance for OKTA stock and more company disclosures about a recent data breach overshadowed results.
For the full-year fiscal year 2024, Okta is expected to turn profitable, earning $1.48 per share. Earnings for 2025 are expected to grow 32%.
Snowflake Lingers In Buy Zone
SNOW stock continues to trade in the 5% buy area past a cup with handle's 192.66 entry. Shares rose 0.1% Wednesday.
Snowflake sells data analytics software that runs on cloud-computing platforms. The company is evolving into a cloud data-management platform. Amazon Web Services, the cloud unit of Amazon, is a key Snowflake partner.
Heading into 2024, some analysts view Snowflake as a legit player in generative artificial intelligence amid investor angst over an AI bubble, but Nvidia stock is the clear leader.
Snowflake will turn profitable in fiscal 2024 ending Jan. 31, per Econoday estimates, with the company set to earn 79 cents per share. Earnings are expected to rise 41% in 2025.
Workday Offers Add-On Entry
Finally, Workday shares remain out of buy range beyond a cup base's 252.72 buy point after a powerful breakout on Nov. 29. WDAY stock edged lower Wednesday.
Meanwhile, WDAY stock's recent tight trading created a three-weeks-tight pattern with a buy point of 279.83. That could be used as an add-on entry if shares make a decisive move higher.
During the third quarter, Workday added artificial intelligence capabilities, especially for products used by managers and developers. And the company expanded its partnership with ADP for global payroll and human-resources processes with Amazon Web Services and Alphabet's Google Cloud.
Workday earnings are anticipated to grow 58% in fiscal 2024 ending Jan. 31, with a 15% increase in fiscal 2025.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on Nvidia stock and the other best stocks to buy and watch and the Dow Jones Industrial Average.
