It’s Time To Find Breakouts As Growth Stocks Get A Lift; Microsoft Is One

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The stock market is in a confirmed uptrend, and several growth stocks in the IBD 50 screen are near buy points.


Dow Jones leader Microsoft (MSFT) is nearing a proper buy point of 366.78 in a cup base. The stock also can be interpreted to have formed a handle with a 346.20 entry.

Shares gapped up after earnings were announced on Oct. 25 and have added gains since, causing the relative strength line to reach a new high.

The leading AI play has a perfect Composite Rating of 99. Sales and earnings have accelerated in the past three quarters. In the most recent quarter, revenue from its cloud business grew 19% thanks to growth in Azure and other cloud services. More funds have been buying shares of MSFT over the past seven quarters, giving the stock a strong Accumulation/Distribution Rating of B-.

In the finance sector, TradeWeb (TW) and Visa (V) are near buy points, according to IBD MarketSmith. TradeWeb is at the top of a buy zone from a flat base’s 87.53 entry, while Visa is approaching a buy point of 250.06, also in a flat base.

TW stock is on track for the fifth straight day of gains after breaking out on a strong third-quarter report Oct. 26. The company offers a digital marketplace for shares, bonds and money markets for institutional and retail investors.

Payments company and Dow component Visa reported its fourth-quarter results on Oct. 24. Shares rose after a test of the 200-day line and are now above the 50-day line. Visa boasts steady sales and earnings growth over the past eight quarters.

Growth Stocks Vertex And International Seaways In Buy Zone

A strong rebound from the 50-day moving average has sent Vertex Pharmaceuticals (VRTX) back above a flat base’s 367 entry. Shares are hitting all-time high ahead of earnings on Monday.

The biotech makes drugs to treat disorders such as cystic fibrosis. Shares have been on a tear after an FDA panel gave support Tuesday for a sickle cell treatment that uses the company’s gene editing technology. Vertex ranks first in the biotech group.

International Seaways (INSW) is just above a cup with handle’s buy point of 48.40. Earnings are due on Tuesday. The oil and gas transportation and pipeline group holds a lofty fifth place among IBD’s 197 industry groups after moving rapidly up the ranks from 63rd place over the past six weeks. INSW operates a fleet of 76 tankers.

Other IBD 50 growth stocks of note are Comfort Systems (FIX), which is working on a cup base with a 192.33 entry. The relative strength line is at a new high. Among software names, ServiceNow (NOW) is in a flat base with a buy point of 614.36. ServiceNow ranks second in its group.

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