The Dow Jones Industrial Average showed an unwillingness to decline much in stocks today. The blue chip index cut its early loss to around 40 points, or less than 0.2% ahead of a tidal wave of quarterly results this week.
The S&P 500 and Nasdaq composite also kept losses tidy in the late afternoon, losing less than 0.2%. Volume is running lower vs. the same time Friday.
Meanwhile, Fortinet (FTNT) led a small posse of highly rated growth stocks rising against the grain. That’s a subtle sign of solid appetite for stocks by the institutional crowd.
On The Nasdaq, Not In Dow Jones Industrials
Fortinet, part of the top-ranking software sector in the IBD stock research tables, rose for a seventh session in a row, gaining more than 2%. The expert in firewall, anti-virus and web-filtering network security products has now rallied out of the 5% buy zone after clearing a proper buy point of 88.70 in an excellent cup with handle.
Shares also reached a new high of 95.59.
The 5% proper buy zone for Fortinet goes from 88.70 (the breakout price) to 93.13.
Notice how, on an IBD daily chart, the stock’s relative strength line (drawn in blue) powered into new high ground. That’s bullish.
According to IBD Stock Checkup, the Sunnyvale, Calif., firm gets a 99 Composite Rating on a scale of 1 (terrible) to 99 (terrific). The Composite Rating weighs fundamental, stock price strength and fund ownership quality factors.
Use the Composite Rating as a selection tool for great stocks, not as a timely sell indicator.
The Street sees profit growth cooling off to an 18% gain in the March quarter vs. a year ago to 39 cents a share. Fortinet grew its profits magnificently in the prior four quarters; EPS jumped 94%, 52%, 75% and 84%.
Besides Fortinet, These Top Growth Stocks Also Broke Out
Match (MTCH), a new half-position stock on IBD Leaderboard, and Shopify (SHOP) also bucked the decline on Wall Street. Both are trading above breakout points at 60.02 and 194, respectively. Shopify rebounded off the 10-week moving average after a recent breakout, providing a follow-on entry.
Like Fortinet, Match is facing some very tough comps after posting some huge year-over-year increases on both the top and bottom lines.
Analysts surveyed by Thomson Reuters see the owner of the Tinder app and many other dating websites growing first-quarter profit 19% to 31 cents a share on a 14% pickup in revenue.
In the year-ago quarter of 2018, earnings soared 117% to 26 cents a share on a 36% bulge in the top line.
See the full IBD earnings calendar here.
Gray Television (GTN) (a new stock on IBD Leaderboard) fell for a third straight day and is now back in buy range after a breakout past 23.55. Light volume on Monday signals that many institutions are reluctant to dump shares.
Meanwhile, Ciena (CIEN) is showing more gusto lately. Watch for a new base to potentially develop.
Shares in the leader in high-speed fiber optic networking gear rose more than 1% and briefly crossed back above its critical 50-day moving average.
The Innovator IBD 50 (FFTY) edged up a fraction and hit a session high of 34.58, expanding its year-to-date advance to 25%.
Please follow Chung on Twitter at [email protected] and @IBD_DChung for more on growth stocks, breakouts, chart analysis and financial markets.
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