Nvidia’s chipmaker Taiwan Semiconductor Manufacturing (TSM), along with Amazon stock and Costco Wholesale (COST), headline Wednesday’s IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener.
Wednesday’s stocks to watch picks come from the Stocks Funds Are Buying screen, which finds issues that mutual funds are buying.
Other notable stocks on the screen include eBay (EBAY) and Dow Jones banking giant JPMorgan Chase (JPM).
Nvidia’s Chipmaker
Taiwan Semiconductor, better known as TSMC, is breaking out past a 148.43 buy point in a double-bottom base in the wake of Friday’s strong monthly sales results, per IBD MarketSurge. The stock rallied 2.3% midday Wednesday, further above the entry.
TSMC said Friday that its revenue in April rose 20.9% from March and 59.6% from the same month last year. Year to date through April, TSMC’s sales are up 26.2%. TSMC is the world’s largest chip foundry. Its vast array of customers includes Apple (AAPL), Nvidia (NVDA), Advanced Micro Devices (AMD), Qualcomm (QCOM) and Broadcom (AVGO).
Last week, Magnificent Seven stock Amazon (AMZN) stock hit its latest high, but now shares are pulling back to their 50-day moving average line, a key level to watch. Amazon stock slipped 0.8% Wednesday midday.
In recent weeks, the e-commerce giant reported first-quarter earnings and sales that exceeded expectations, helped by strong growth for its cloud-computing and advertising businesses.
Besides Amazon Stock: JPMorgan, EBay Eye Buy Points
Outside of Amazon, another top stock in the Dow Jones index is financial leader JPMorgan. The banking giant is breaking out past a 200.94 buy point in a flat base, according to MarketSurge charts. The 5% buy zone runs up to 210.99.
JPMorgan stock fell 0.7% in midday trades Wednesday, right at the latest entry.
On May 1, e-commerce marketplace eBay reported first-quarter earnings and sales that exceeded expectations. But eBay stock fell as the company also gave a lighter-than-expected sales forecast for the current quarter. Shares tumbled more than 3% to break below their 50-day line.
But shares have more than erased those losses, as they regained their 50-day line this week. Now the stock is approaching a 52.93 buy point in a flat base.
Costco Hits Buy Point
Retail giant Costco Wholesale is attempting to break out above a 787.08 buy point in a cup base. Shares moved up 1,3% midday Wednesday, just above their buy point.
On March 8, Costco missed holiday-quarter revenue expectations, offsetting higher e-commerce sales. Comparable sales grew almost 6% vs. a year earlier. Online sales grew 18% vs. a year ago.
Costco said it earned $3.92 a share, up nearly 19% vs. the year-earlier period and ahead of estimates. Revenue rose nearly 6% to $58.44 billion, missing views.
The stock’s relative strength line hit new highs on the weekly chart. That’s a positive sign amid the ongoing breakout.
