Investors have been infatuated with Magnificent Seven stocks like Nvidia (NVDA) and Tesla (TSLA). But Arista Networks (ANET), GE Aerospace (GE), Spotify Technology (SPOT) and Interactive Brokers (IBKR) are among a cluster of promising names clearing entries.
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Stocks rallied with aplomb Thursday following the Fed’s bumper rate cut Wednesday, and it is a good time to buy stocks. Here are a group of stocks with good fundamental and technical performance worth considering.
Alternative To Nvidia? Arista Breaks Out
Arista Networks is clearing a consolidation entry with an ideal buy point of 376.50, according to MarketSurge pattern recognition. It ended Thursday up 4.8%.
Its relative strength line is spiking higher. This gauges a stock’s performance vs. the benchmark S&P 500 index.
Arista stock holds an IBD Composite Rating of 96 out of 99. It has rallied more than 61% so far in 2024. But earnings are its strongest suit, with its EPS Rating sitting at a stellar 98.
Arista sells computer network switches that speed up communications in internet data centers. Its biggest customers include Microsoft (MSFT), Facebook parent Meta Platforms (META) and Oracle (ORCL).
GE Aerospace Stock
GE Aerospace stock found support at its 50-day moving average and is clearing the top of the 5% buy zone above a new consolidation entry of 177.20. It notched a 1.4% gain Thursday.
This is a first-stage pattern, MarketSurge analysis shows. IBD research has found that early-stage bases are more likely to net good gains for investors.
Strong overall performance is reflected in GE Aerospace’s perfect IBD Composite Rating of 99. GE stock has spiked nearly 83% so far this year.
The firm rose from the ashes of the old General Electric conglomerate. Considered its “crown jewel,” it designs and makes jet engines and aviation systems. It also operates an aftermarket business for engine repair, maintenance and other services.
Spotify Stock
Spotify stock is actionable after rising into the buy zone from a 359.38 buy point. The relative strength line has just reached fresh heights on its weekly chart. This is a bullish sign. It rallied an impressive 4.7% Thursday.
Earnings are solid for Spotify. It is up about 93% year-to-date and looks poised to add to that.
An analyst Thursday raised his price target on the music streamer to the highest on Wall Street. Pivotal Research Group analyst Jeffrey Wlodarczak upped his price target to 510 from 460 and reiterated his buy rating.
Spotify’s streaming rivals include big guns such as Apple (AAPL), Amazon.com (AMZN) and Alphabet (GOOGL).
Interactive Brokers Stock
Interactive Brokers stock has cleared a consolidation buy point of 129 and remains in the buy zone. It managed to nail down a 1.7% lift Thursday.
The stock has a perfect IBD Composite Rating of 99. Both price and earnings performance are strong.
Interactive Brokers is up about 60% so far this year. Earnings popped 33% in the most recent quarter and have grown by an average of 24% over the past three quarters.
Founded in 1978, the Greenwich, Conn., company operates the largest electronic trading platform in the U.S. by number of daily average revenue trades.
Shift4 Stock
Shift4 stock is in the 5% buy zone above a cup-with-handle entry of 83.64. The relative strength line is gaining traction, a good sign. FOUR stock popped 2.8% Thursday.
Overall performance is very good, with its IBD Composite Rating sitting at 96. Key to this is earnings performance, with EPS rising an average of 32% over the past three quarters.
Earnings are expected to ramp up 32% in 2024 before slowing to a still impressive 28% next year.
The payment processing services provider is a member of the IBD Sector Leaders list. This is Investor’s Business Daily’s most stringent and powerful screen
Monday.com Stock
Monday.com climbed above an alternate buy point at 272.77 Thursday. It closed the session with a muscular 5% gain.
The stock previously got support at the 50-day moving average. Its RS line is moving in the right direction following a pause.
Big Money has been snapping up the stock of late, which is reflected in its Accumulation/Distribution Rating of A-. In total, an outstanding 91% of shares are held by funds.
The enterprise software firm is seeing strong growth in adoption of its workflow automation and productivity platform. EPS is seen rising 53% this year before slowing to 18% growth in 2025.
Slew Of New Buys From Strong Rally. Pay Attention To This Big Shift.
Broadcom Stock
The chip stock rallied 3.9% Thursday. It offered an early entry last week as it topped a trendline and cleared the 50-day line.
Shares pulled back on Sept. 16, but Friday’s high of 168.08 could be used for an aggressive entry. The 5% buy zone here tops out at 176.48. Its short-term high of 172.42 serves as another alternative buy point.
Excellent all-around performance is reflected in Broadcom’s near-perfect IBD Composite Rating of 98.
Broadcom serves as an alternative artificial intelligence play for those who believe Nvidia stock is too richly valued.
The company is a leader in custom chips that companies need to implement all the power that AI brings to data centers, networks and connected devices such as smartphones.
Magnificent Seven: Don’t Forget Nvidia
Meanwhile, Nvidia stock itself is retaking its 50-day moving average, which could be used as an entry.
This would be an aggressive move, given it remains stuck in a downtrend. However, it has rallied from recent lows.
While it has been taking a breather, Nvidia remains up 141% for the year so far.
Its gains have been fueled by buzz over its artificial intelligence chips. It was recently revealed that Salesforce (CRM) will collaborate with the company to build “autonomous agent experiences” through AI on Salesforce’s platform. This is just the latest in a slew of deals.
It is a member of the IBD Leaderboard group of stocks. It has also won a spot on SwingTrader.
It’s been a good day for the Magnificent Seven. The Roundhill Magnificent Seven ETF (MAGS) is rallied 3.7% for its best day since Feb. 22.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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