PayPal (PYPL) and Workday (WDAY) are charging toward new buy points. Both are among the leading growth stocks on the IBD Breakout Stocks Index and featured on the IBD Breakout Opportunities ETF (BOUT).
While Nvidia (NVDA) and other stocks on the BOUT ETF are extended, others such as Floor & Decor (FND) and building sector stocks Atkore (ATKR) and Builders FirstSource (BLDR) are also in or near new buy zones.
PayPal Nears Buy On Bitcoin, Cryptocurrency Trends
Although Bitcoin and other cryptocurrency stocks ran into selling pressure Tuesday, PayPal is tapping into long-term crypto trends.
Among its latest move in that space, PayPal launched the ability to buy, hold and sell cryptocurrency in the United Kingdom last month. The launch marks the first expansion of PayPal’s cryptocurrency beyond the U.S.
PYPL stock gapped down in heavy volume after PayPal reported earnings on July 28. But the payment processing and leading crypto stock bounced back in heavy trade at the end of August to retake its 50-day moving average. PayPal reversed in heavy volume to close below that benchmark Wednesday.
The relative strength line has fallen off its highs hit in mid-February. Look for the RS line to continue to recover, as it started to in August.
PayPal is 8% shy of the buy point.
Workday Ramps Up Move Toward Fresh Breakout
A leading player among cloud stocks in the financial and HR space, Workday has made a strong but volatile ride toward a new high.
WDAY stock is now pushing toward a 282.87 buy point after spiking over 14% for the week ended Aug. 27 after reporting earnings. Since gapping up on earnings, Workday has held those gain but slipped off its highs on Tuesday.
The Silicon Valley-based company posted 46% EPS growth in its latest report and has averaged annual earnings growth of 47% over the last three years. The enterprise software cloud stock has generated average annual sales growth of 24% during the same period.
Institutional investors like what they see with Workday. WDAY stock has a B Accumulation/Distribution Rating and a solid 1.5 up/down volume ratio. Like with PYPL stock, Workday sports eight quarters of rising fund ownership.
Last month, Workday achieved ready status for the Federal Risk and Authorization Management Program. The program is known as FedRAMP, and the new status marks entry into the federal market and helps Workday federal agencies’ accelerate their IT transformation. It also represents a significant milestone for Workday and bolsters its opportunities for growth.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to essentially invest in the entire index in addition to or rather than buying the individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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