Salesforce and Nvidia Lead with Strong Earnings Outlook in Dow Jones and Magnificent Seven Stock List

Salesforce, a leading player in Dow Jones software, and the distinguished member of the Magnificent Seven, Nvidia, take the spotlight in today’s IBD Screen Of The Day. This column zeroes in on top ideas from the Rising Profit Estimates screen, uncovering stocks with increasing price targets and analyst commendations.

Noteworthy additions to the list include Chipotle Mexican Grill and Uber Technologies. In the current market downturn, investors are advised to seek out stocks demonstrating resilience. Identifying leaders that maintain positions above crucial support levels and rebound in robust volume is crucial.

Salesforce, a Dow Jones standout, has surged beyond the 5% buy zone since its Nov. 30 earnings-driven breakout from a 238.22 entry. The company reported a 51% increase in earnings to $2.11 per share (adjusted basis) on Nov. 29, with revenue climbing by 11% to $8.72 billion. Analysts anticipate Salesforce to earn $8.14 per share for fiscal year 2024, reflecting a 55% rise, with an additional 8% increase projected for 2025. Following a recent upgrade by Baird analyst Rob Oliver to outperform from neutral, optimism surrounds Salesforce due to factors such as historical valuation lows, restrained expectations, and potential growth drivers.

Nvidia, a powerhouse in AI, has extended beyond the 505.48 buy point from a flat base after an impressive breakout on Jan. 8. Despite a marginal dip of around 1% on Wednesday, the stock remains elevated from Tuesday’s record highs and holds a coveted spot on the IBD Leaderboard. Analysts predict a staggering 241% surge in Nvidia’s earnings for fiscal 2024 (ending Jan. 30) to $11.37 per share. Further, estimates from FactSet indicate a 69% increase in fiscal 2025. With outstanding fundamentals and a perfect IBD Composite Rating of 99, Nvidia stands out as one of the prime stocks to buy and watch.