AMD Stock Nears Latest Buy Point; Chipotle Boasts Rising Profit Estimates| Investor’s Business Daily

modern micro devices (AMD) and Chipotle Mexican Grill (CMG) are making today’s IBD Screen of the Day, a column focused on top ideas in the IBD Stock Screener.

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The stocks to watch today come from the Rising Earnings Estimates screen, which finds issues that drive higher price targets and analyst upgrades. In addition to AMD and CMG, the latest screen has also reported fox factory (FOXF) and Island (PODD).

AMD stock is nearing the buy point

AMD stock is forming a flat base with a buy point of 89.04, according to chart analysis by IBD MarketSmith. Shares edged higher Wednesday afternoon. Bullishly, the relative strength line is at its highest level since August. However, the stock market correction means investors should avoid buying stocks until the market improves.

Advanced Micro posted earnings that fell 25% year over year to 69 cents a share in its most recent quarter. In the previous three periods, it posted earnings growth of 117% and 67%, followed by an 8% decline. Watch for a return to earnings growth for the current quarter.

Revenue growth remained positive for the chipmaker. Revenue rose 16% to $5.59 billion last quarter, down from gains of 71%, 70%, and 29% in the previous three quarters.

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

Amid solid fundamentals and big gains over the past few months, AMD stock holds a strong IBD Composite Rating of 95 out of 99, according to the IBD Stock Checkup.

Chipotle back above the key level

This week, Chipotle stock continued to move above its key 50-day moving average. Stocks are moving higher on the right side of a new base formation, although it’s still too early to set a proper buying point. Shares must continue to advance before an entry occurs.

CMG shares fell 0.8% as of Wednesday afternoon.

The burrito chain missed fourth-quarter earnings, revenue and sales estimates on Feb. 7. Despite the failure, profit and sales grew 49% and 11%, respectively, from the year-ago period.

Chipotle’s revenue is projected to grow 28% in 2023 and 22% in 2024.

Fox Factory, Island Eye Buy Points

Much like AMD stock, Fox Factory is tracking a flat basis, this time with a buy point of 127.64, as shares struggle to stay above their 50-day moving average during Wednesday’s 2.8% midday decline.

With 20 locations on four continents, Fox Factory manufactures high-performance suspension products for bicycles, road vehicles, all-terrain vehicles (ATVs), snowmobiles, utility vehicles and specialty vehicles.

Insulet bounced up this week when it was announced it would be included and replaced on the S&P 500 SVB Finance (SIVB). Shares are nearing the buy point of a consolidation at 320.10, 4% from entry.

The company sells insulin pumps for genetic type 1 diabetes and the progressive type 2 condition. Diabetes patients need extra insulin to keep their blood sugar levels under control.

Insulet devices are wearable insulin delivery systems. The company recently launched a new device called the Omnipod 5 for Type 1 patients ages 2 and older.

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