IBD Screen Of The Day: AMD Surges Past Buy Point, Chipotle Boast Rising Profit Estimates


Advanced Micro Devices (AMD) and Chipotle Mexican Grill (CMG) made Wednesday’s IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener.


Wednesday’s stocks to watch come from the “Rising Profit Estimates” screen, which finds issues attracting higher price targets and analyst upgrades. In addition to AMD and CMG, the latest screen has also flagged Fox Factory (FOXF) and Insulet (PODD).

AMD Stock Tops Buy Point

AMD stock broke out past a flat base‘s 89.04 buy point on Wednesday, according to IBD MarketSmith chart analysis. Shares jumped nearly 6% Thursday, moving out of buy range past the entry. Bullishly, the relative strength line is at its highest level since August. However, the stock market correction means investors should avoid stock buys until the market improves.

Advanced Micro posted a 25% year-over-year earnings drop to 69 cents per share last quarter. In the prior three periods, it reported 117%  and 67% earnings growth, followed by an 8% decline. Look for a return to earnings growth for the current quarter.

Revenue growth has stayed positive for the chipmaker. Sales last quarter grew 16% to $5.59 billion, smaller than the 71%, 70% and 29% upticks in the prior three quarters.

For 2023, AMD earnings are expected to fall 11% before jumping 39% in 2024.

Amid solid fundamentals and big price gains in recent months, AMD stock boasts a strong 95 out of 99 IBD Composite Rating, according to IBD Stock Checkup.

Chipotle Back Above Key Level

This week, Chipotle stock moved further above its key 50-day moving average. Shares are climbing the right side of a flat base that offers a 1,724.81 buy point.

CMG stock moved up 2.1% midday Thursday, about 6% away from the latest buy point.

The burrito chain missed fourth-quarter earnings, revenue and same-store sales estimates on Feb. 7. Despite the miss, earnings and sales rose 49% and 11%, respectively, vs. the year-ago period.

Chipotle’s earnings are expected to grow 28% in 2023 and 22% in 2024.

Fox Factory, Insulet Eye Buy Points

Similar to AMD stock, Fox Factory is tracing a flat base, this one with a 127.64 buy point, as shares rebound from their 50-day line during Thursday’s 3% midday climb.

With 20 locations across four continents, Fox Factory makes high-performance suspension products used on bicycles, on-road vehicles, all-terrain vehicles (ATVs), snowmobiles, commercial trucks and specialty vehicles.

Insulet jumped this week on news that it will join the S&P 500, replacing SVB Financial (SIVB). Shares are nearing a consolidation’s 320.10 buy point and are 4% away from the entry.

The company sells insulin pumps for genetic type 1 diabetes and the progressive type 2 condition. Diabetes patients need additional insulin to keep their blood sugar in check.

Insulet’s devices are body-worn insulin delivery systems. The company recently launched a new device for type 1 patients age 2 and up, dubbed Omnipod 5.


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