An image of a quarterly report on a screen

Two FANG Stocks And A Top Growth Name Sketch New Buy Points

An image of a quarterly report on a screen
Shutterstock photo

Leading tech stocks kicked off 2018 with a bang, as the tech-heavy Nasdaq surged over 1% to near a fresh record high. Two FANG stocks were approaching new entries and looked to add to their strong 2017 performances. Meanwhile, a Leaderboard stock sketched a new formation.

[ibd-display-video id=3058944 width=50 float=left autostart=true] FANG stock Netflix ( NFLX ) surged over 4% in the stock market today , as it forms a flat base with a 204.48 buy point. Shares were about 2% away from that level through midday trade Tuesday. Volume was tracking over 100% above average.

Sparking the move were two analyst actions in the name. Loop Capital called the video streamer its best idea of 2018, bumping its price target to 241 - a premium of 25% over Friday's closing price. Meanwhile, Macquarie Research upgraded the stock from neutral to outperform, citing the improving quality of the company's earnings and sales figures.

In the most recent quarter, year-over-year earnings and revenues grew 142% and 30%, respectively. Looking forward, consensus estimates show the streaming firm's earnings growing a whopping 191% in fiscal-year 2017 and another 82% in 2018. Both figures have been revised higher by analysts.

Earnings season is once again rapidly approaching. Netflix is due to report its Q4 earnings on Jan. 22.

Meanwhile, ( AMZN ) rose 1.5% Tuesday. Shares of the e-commerce giant moved within 3% of a potential 1,213.51 flat-base entry.

After a breakaway gap on Oct. 27, the stock held up well during the late November tech sell-off, only declining 7% from its record highs and staying well-above its 50-day line. According to the IBD Stock Checkup, the stock has a solid B- Accumulation/Distribution Rating and a 1.2 up/down volume ratio.

Amazon has touted strong holiday sales , calling it its "best holiday yet." The company announced it had sold "tens of millions of Alexa-enabled devices."

Elsewhere, Leaderboard member Splunk ( SPLK ) is breaking out after etching a narrow flat base. The second-stage flat base has a buy point of 84.98 and the stock is in buy range. Volume is running well below average.

Splunk has been rising in solid fashion since a huge earnings-generated move on Nov. 17 when the stock shot up nearly 18%. The stock's recent action also includes a series of tight closes, indicating that institutions are holding on - and even adding - to their positions despite the big move with expectations of higher share prices.

The database software developer boasts two quarters of accelerating profit growth, from no change to gains of 60% to 70%. The earnings acceleration is a bullish fundamental metric shared by many historical big winners.

Tip: Before making any investment decisions, be sure to check current market conditions , and use IBD Stock Checkup to see if your stock gets passing ratings for the most important fundamental and technical criteria. To get ongoing chart analysis, and alerts to buy and sell signals, check out Leaderboard and SwingTrader .

Symbol Company Chart Analysis
( AMZN ) Flat base shows 1,213.51 buy point.
( EDU ) New Oriental Education In range from flat base's 94.73 entry, above 10-week line.
( HDB ) HDFC Bank In buy range of 100.36 buy point of flat base.
( NFLX ) Netflix Forming base on base pattern with a 204.48 entry.
( SPLK ) Splunk Flat base shows 84.98 buy point.
(WMT) Wal-Mart Stores New flat base forms with a 100.23 buy point.


The FANG+ Stocks Are All At Key Technical Levels To Start 2018

FANG Stocks News & Quotes: Facebook, Amazon, Netflix, Google

Making Money In 2018: Four Steps To Increase Your Investing Returns

2018 Personal Finance Action Plan & 2017 Stock Market Review

2018 Stock Market Forecast: Smaller Price Gains, With A Foreign Tilt

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


Other Topics