Using a smartphone to calculate data
Markets

Robot Surgeon Breaks Out; Two Top Financials Hit New Highs

Using a smartphone to calculate data

Shutterstock photo

Despite the brief sell-off in the general market early Wednesday, a few top growth stocks were hitting new 52-week highs, including a strong breakout from a medical name. Meanwhile, two financial stocks continued to outperform.

[ibd-display-video id=3074620 width=50 float=left autostart=true] Robot surgeon Intuitive Surgical ( ISRG ) surged past a 405.15 flat-base entry , rising over 5% to an intraday high of 426. Early Wednesday, the company reported preliminary Q4 and full-year 2017 sales results that came in above the Street's targets. The upbeat sales guidance sparked the upside move.

In the third-quarter results announced Oct. 19, year-over-year earnings and sales growth came in at their highest levels in years - 34% and 18%, respectively. Its current quarter's final results are due Jan. 25.

Analysts expect the company's earnings to grow 17% in 2017 and 8% in 2018. Analysts have revised those estimates higher.

Even though the latest base was only second stage , it had a significant move up in 2017 following a cup-with-handle breakout in early February above a 233.55 entry. Following an over-70% move, the stock consolidated below its 50-day line for a number of weeks before regaining that level after the new year.

Later-stage bases have less upside potential than early-stage bases.

Top financials have been showing renewed strength as the rise in interest rates continues. Yields climbed for a fifth day Wednesday.

Charles Schwab ( SCHW ) was on track to extend a win streak to seven sessions with a rise to a 54.48 high in afternoon trading. Schwab cleared a short pattern of tight trading, although it wasn't a clear-cut buy area.

The brokerage firm has been a top performer since a base-on-base breakout on Nov. 21 above a 46.31 entry.

Check out the stock's relative strength line - the blue line displayed on every IBD and MarketSmith daily and weekly chart. It made a new high on the breakout day and continues to make new highs along with the stock, signifying strong market outperformance indicative of a market leader.

Asset manager State Street ( STT ) continued its trek into new-high territory Wednesday with a rally to its daily peak at 104.93.

Shares are on the cusp of being extended from a 100.09 cup-shaped base entry after a Dec. 13 breakout initially faltered. Shares regained that buy point Tuesday in slightly above average volume. The 5% buy range tops out at 105.09.

While the stock's relative strength line still hasn't reached a new high - a potential flaw - the stock does have an A- Accumulation/Distribution Rating, according to the IBD Stock Checkup . The rating indicates strong institutional demand over the last quarter.

RELATED:

Why The Base-On-Base Chart Pattern Etches Superb Stock Gains

Banks And Financial Stocks: Latest News And Analysis

BlackRock, JPMorgan Setting Up Potential Earnings Options Plays

Hot Companies In Hot Sector To Report; CES Talks Up Alexa: Action Plan

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SCHW STT ISRG

Other Topics

Stocks

Latest Markets Videos