Sifting through thousands of stocks to find growth leaders like Meta stock can be arduous. But when that gets cut down to 50, the task of building watchlists gets much easier. Reduce that further to four.
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How To Buy Stocks: Bases And Buy Points
Four stocks in the IBD 50 are near buy points. Markets have rallied back from their Aug. 5 lows, and some quality stocks near new highs are worth adding to a watchlist.
Netflix (NFLX) has a good-looking chart. The stock recovered from an earnings sell-off on July 19 and formed a cup-without-handle base. Shares broke out past the 697.49 buy point on Tuesday and reached an all time high of 711.33. But the stock has fallen below the entry, albeit in lighter volume. So far, there’s no sell signal.
Its relative strength line is near new highs, going by IBD MarketSurge’s chart analysis tools. The video streaming company has also reported steady sales growth over the five most recent quarters.
Analysts polled by FactSet are bullish, expecting profits to rise 59% in 2024 and 20% in 2025. The stock has a Composite Rating and EPS Rating of 98 and has outperformed 91% of other stocks in the IBD database in terms of price performance. Mutual funds have been net buyers of the stock in recent weeks, giving it an Accumulation/Distribution Rating of B-.
Meta Stock Nears Buy Point
Meta Platforms (META) has rallied in August as well. Shares reached a new high on Thursday and are near a buy point of 542.81.
A strong second-quarter report drew buyers in on Aug. 1 and lifted the stock above the 50-day moving average. Strong advertising revenue and AI spending plans have analysts seeing profits rising 37% in 2024 and 13% in 2025.
The social media giant ranks first in the internet content industry group. Strong sales and earnings growth over the most recent five quarters and solid IBD Ratings are points in favor of the Magnificent Seven company. Meta’s up/down volume ratio of 1.2 also shows strong buying interest over the past 50 days.
On Holding (ONON) is getting past a buy point of 44.30 after an earnings rally like Meta. Its buy range goes up to 46.52.
The company reported on Aug. 13 that sales and earnings accelerated in the second quarter. Shares soared in heavy volume. The athletic shoes and apparel manufacturer ranks second in its industry group and boasts a 92 Relative Strength Rating, the best in its industry group. Its Accumulation/Distribution Rating is B.
Freshpet (FRPT) is climbing above a buy point of 136.35 Friday.
The company reported a loss of 3 cents per share on sales of $235.3 million for the second quarter, although the packaged pet food maker raised its sales guidance for the full year to $965 million from $950 million.
Like Meta stock, Freshpet stock is No. 1 in its group. It has outperformed 95% of other stocks in the IBD database. Analysts are expecting the company to post a profit this year, with earnings increasing 80% in 2025. The stock holds an Accumulation/Distribution Rating of B.
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