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The best-rated growth stocks in the financial services, digital advertising and telecommunications sectors posted gains that triumphed from a rise of about 0.5% in the Dow Jones Industrial Average, including including the Dow Jones component Visa (V). The credit and debit card transaction giant grew by more than 1% and exceeded a 145.82 point purchase point in a cup base with double bottom elements.
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Shares of today have fluctuated slightly over the last 75 minutes of trading following President Trump's remarks on the state of trade negotiations with his Chinese counterpart, Xi Jinping. Bloomberg said the negotiators on both sides were planning to extend talks in the weekend. The Nasdaq composite, up 0.9% at the beginning, reduced its gain to about 0.6%.
Around 15:25 ET, the S & P 500 grew by almost 0.5%. But the Russell 2000 gained more than 0.7%, indicating growing confidence in the US economy and prospects for future earnings growth.
The volume was up sharply compared to the same time on Thursday on the Nasdaq and slightly below the NYSE.
This component of the Dow Jones remains a leader in the financial sector
According to the IBD Stock Checkup group, Visa's credit card processing group ranks 52nd out of 197 groups. Visa gets an intelligent composite rating of 95 on a scale of 1 (horrible) to 99 (awesome). The composite rating analyzes the quality of an action on three major fronts: its fundamental strength, its share price against the S & P 500 index and the rest of the database on IBD shares, and its quarterly institutional sponsorship.
The 5% purchase area in Visa expands up to 153.11.
In a suitable double bottom, the base should have two significant sales with an intermediate recovery between the two lowest. In addition, the second minimum should undermine the first minimum, even if it is only a penny.
In the case of Visa, the stock is sold after a peak of 151.56 and reached a first low at 129.54 before bouncing sharply to 145.72 early December. However, stocks did not rebound until the old peak. Instead, they sold again, hitting a new low of 121.60, easily eliminating the first low of 219.54.
This second relaxation is essential to the future success of the chart model. Why? This means a real ousting of unhappy or uncommitted holders, passing on these actions to more convinced portfolio managers.
Analysts predict that Visa will increase its earnings by 15% to $ 5.31 per share for the 2019 fiscal year, ending in September this year, and 16% for fiscal year 2020.
Biggest growth stocks crushing Dow Jones performance
Meanwhile, Trade Office (TTD), Acacia Communications (ACIA) Working day (WDAY) and Xilinx (XLNX) continued to show leadership in the market. All four broke out and staged impressive gains from their respective buying points.
Trade Desk, which originally had a 149.10 buy-in point in a long-standing double-bottom base on February 4, has seen its monster volume surge by more than 30 percent as a result of the exceptional fourth-quarter results. He joined IBD Leaderboard again, this time as a new position at mid-size, in full swing.
More tech stocks burst, increase earnings
Acacia Communications also posted excellent earnings after a dramatic recovery in its fourth quarter results (EPS up 52%, a 24% year – over – year figure). For more details on finding the right purchase point, refer to this IBD New Highs column.
Workday, a leader in cloud-based enterprise software for human resource functions and now financial and accounting operations, built a base of 172.77 points over four months. The stock crossed the point of purchase on January 23, fell slightly for several days, then climbed as the uptrend in the stock market boomed, confirmed by the January 4 follow-up, strengthened. .
The share of Workday, which reaches a new high of 194.72, is now up 12.7% after the correct entry. Workday is also up 22% since January 1st. The Dow Jones Industrial Average rose 11.3% over the same period.
This action by Warren Buffett slides lower than its summits
On the other hand, Kraft Heinz (KHC) was beaten at the opening and plunged more than 26% to its lowest level. At age 34, the packaged food giant is now well below its beginnings in October 2012, when it was finished this month around age 37.
The owner of many long-standing brands in cheese, pickles and condiments said he was questioned by the SEC about his accounting practices. Berkshire Hathaway (BRKA) of Warren Buffett, the largest holder of Kraft Heinz shares, sold nearly 2%.
Kraft Heinz announced a disappointing 7% drop in its fourth-quarter profit to 84 cents per share, 9 cents below consensus, as sales rose 1% to $ 6.89 billion. The Company also recorded $ 15.4 billion of non-cash asset impairment charges to reduce the carrying amount of goodwill related to certain units, including US Refrigerated and Canada Retail.
The right time to sell Kraft Heinz
Kraft Heinz has long shown a poor stock action for months.
The right time to get out of stock came in June 2017, when Kraft Heinz failed to complete a flat base of nearly four months showing a 97.87 buying point. The stock did not burst. Instead, stocks slipped below the key moving averages over 10 weeks and 40 weeks. To learn more about how to use this defensive sell signal in a timely manner, please refer to the Investor Corner column.
At the end of July of the same year, Kraft Heinz's ten-week line was down. The stock made several rebound attempts, but failed to recover above the main support and resistance chart indicator.
Please follow Chung on Twitter at @IBD_DChung for more information on growth stocks, developments and financial markets.
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