With the tech-heavy Nasdaq teasing the 18,000 mark, Alphabet (GOOGL), Palantir Technologies (PLTR) and Netflix (NFLX) showcase a slew of companies to watch on Investor’s Business Daily’s Breakout Stocks Index. Google now trades near its own record high as Palantir stock eyes a new buy point. Meanwhile, cybersecurity leaders CrowdStrike (CRWD), Palo Alto Networks (PANW) and CyberArk Software (CYBR) own spots on the list.
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Monthly Market Report With Jim Roppel & Alissa Coram: June 2024
The IBD Breakout Opportunities (BOUT) exchange traded fund from Innovator Capital Management tracks the names on this screen. Updated weekly, the IBD Breakout ETF enables investors to own a piece of leaders like Alphabet, Palantir and Netflix with a single trade.
Viewed on a weekly chart, the IBD Breakout ETF is working on a cup with handle showing a 35.85 entry. Seen on a daily chart, the ETF has also formed a flat base with the same buy point. On Tuesday, the BOUT ETF popped back above its 50-day moving average in below-average, but rising volume. Building on that momentum, the ETF popped again early Wednesday ahead of the 4th of July holiday.
See Who Joins Palantir, Netflix On The IBD Breakout Stocks Index
Palantir Stock, Google, Cybersecurity Names Continue To Tap AI Boom
With artificial intelligence seeping into all industries, the AI angle is an unmistakable factor for many stocks featured on the BOUT ETF. Google, Palantir, ServiceNow (NOW) and Datadog (DDOG) all qualify as AI stocks.
The integral role of AI and cloud-based networks means ever-present challenges for cybersecurity firms like CrowdStrike, Palo Alto Networks, CyberArk and Check Point Software (CHKP).
Social media leader Pinterest (PINS) uses AI to create positive experiences for users. And Netflix also uses AI in multiple ways, including to surface recommendations that keep viewers binge-watching the video streamer’s content.
Medical Sector Makes It Mark On IBD Breakout ETF
The IBD Breakout ETF features a range of companies in the medical space that have already broken out or are now extended beyond buy range. That group includes Intuitive Surgical (ISRG), Globus Medical (GMED) and Halozyme Therapeutics (HALO).
Denmark-based Novo Nordisk (NVO), the maker of popular weight-loss drug Ozempic, cleared a 137.22 buy point in cup with handle on June 4. Novo Nordisk stock then shot higher to become extended.
On Tuesday, however, the company and rival Eli Lilly (LLY) fell after President Biden slammed the drugmakers for what he called “unconscionably high” prices. Novo Nordisk stock retreated back into buy range on the news, but closed the session near the top of the day’s price range. It’s down again Wednesday.
LLY stock also fell on Tuesday’s news but bounced off its 21-day line and is up on Wednesday.
Breakout Watch: Palantir Stock Rises, These AI Names Set Up
Featured in the IBD Stock Analysis on June 7 as it targeted an early trendline entry around 24, Palantir stock has since cleared that buy point and is now taking aim at an irregular entry at 26.57.
Showing rising technical strength, the stock’s 21-day exponential moving average recently shot back above the longer-term 50-day line. Plus, Palantir’s relative strength line has perked up, a sign of market leadership.
Other AI and cybersecurity stocks crafting new bases and breakouts include Palo Alto, CyberArk and Check Point Software, which just broke out into buy range.
Netflix stock has climbed just beyond buy range after clearing a 639 buy point in a late-stage cup pattern in May. The streamer just got a bullish call on live sports and other initiatives.
Pinterest stock remains in buy range following a breakout in a first-stage cup, also in May.
Scan the full list of IBD Breakout ETF components, including ELF Beauty (ELF), Arm Holdings (ARM) and more.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF (BOUT) 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, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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