At a Glance
- Amazon, Idexx, SharkNinja, and Eli Lilly are flashing buy signals while major indexes trade mixed near records
- The Nasdaq and S&P 500 sit at all-time highs, but breadth remains narrow with only select leaders breaking out
- Investors using the IBD Methodology are watching for confirmed breakouts from proper bases
- Why it matters: Spotting institutional-quality breakouts early can lead to outsized gains before the crowd catches on
Major indexes traded mixed Tuesday as the Dow Jones Industrial Average lagged while the Nasdaq and S&P 500 hovered near record territory. Amid the choppy action, four names stood out as potential leaders: Amazon (AMZN), Idexx Laboratories (IDXX), SharkNinja (SN), and Eli Lilly (LLY).
Narrow Leadership Creates Opportunity
With breadth thin and only select stocks breaking out, investors following News Of Los Angeles‘s IBD Methodology are focusing on quality. The methodology emphasizes buying stocks with strong fundamentals as they emerge from well-formed chart patterns on heavy volume.
Key traits the system flags:
- Earnings growth of 25% or more in recent quarters
- Sales increases accelerating over time
- Return on equity above 17%
- New price highs on volume at least 40% above normal
Tuesday’s session illustrated the challenge: while the Nasdaq ticked up 0.1% and the S&P 500 added 0.2%, the Dow slipped 0.1%. Beneath the surface, breakouts remained scarce, making the four names above even more noteworthy.
Amazon: Cloud King Eyes Fresh High
Amazon rose 1.4% to $189.50, moving within striking distance of a $191.40 buy point from a flat base. The e-commerce and cloud giant has now formed a tight three-week consolidation after a strong run off October lows.
Volume came in 15% above average, not yet the 40% surge technicians prefer, but enough to hint at institutional interest. The relative strength line, which tracks performance vs. the S&P 500, sits near highs, confirming leadership.
Fundamentals remain robust:
- AWS revenue grew 19% last quarter to $27.5 billion
- Operating margin expanded to 38%, a record for the segment
- Free cash flow surged to $32.1 billion over the trailing 12 months
Idexx: Pet-Care Juggernaut Stays in Buy Zone
Idexx Laboratories climbed 2.1% to $571.25, holding above a $556.04 cup-with-handle entry. Volume ran 22% above normal, marking the third straight accumulation day.
The maker of diagnostic tools for veterinarians has benefited from the humanization-of-pets trend. Pet owners increasingly treat dogs and cats as family members, driving demand for advanced testing.
Recent results show momentum:
- Revenue rose 10% to $916 million, beating views
- Earnings grew 21% to $2.49 per share, accelerating for the third quarter in a row
- Guidance raised for full-year organic growth to 11.5% from 10.5%
SharkNinja: Newly Public Appliance Star Surges
SharkNinja jumped 5.7% to $42.80, clearing a $41.60 IPO base in more than double normal volume. The company, which went public in July, makes kitchen appliances including blenders, air fryers, and coffee makers.
The breakout came after News Of Los Angeles highlighted the stock in its IPO Leaders screen, citing:
- Revenue growth of 21% last quarter
- Market-share gains in high-velocity categories
- Innovation pipeline with 200+ patents filed annually
Analysts expect earnings to rise 28% this year to $1.36 per share, followed by 22% growth in 2025.
Eli Lilly: Obesity Giant Extends Run
Eli Lilly advanced 1.9% to $885.40, hitting another record. The drugmaker has now rallied 92% over the past 12 months thanks to surging demand for its Mounjaro obesity treatment.
The stock is well extended from any proper buy zone, but momentum remains powerful:
- Mounjaro sales totaled $3.2 billion last quarter, tripling year over year
- Pipeline includes donanemab for Alzheimer’s, with FDA decision expected by year-end
- EPS grew 59% to $3.64, crushing estimates
What to Watch Next
With indexes near peaks but leadership narrow, investors should:
- Track volume on any breakout-40% above average confirms institutional demand
- Check earnings dates-Amazon reports October 24, Idexx November 1, SharkNinja November 7, Lilly October 30
- Set sell rules-cut losses at 7% below buy point, take profits when gain reaches 20% in a strong market
The IBD Methodology also stresses market direction. If the Nasdaq or S&P 500 flashes a distribution day count of five or more over a rolling five-week period, it signals institutional selling and warrants a more defensive stance.
Key Takeaways
- Amazon, Idexx, SharkNinja, and Eli Lilly are among the few names flashing valid breakouts in a mixed market
- Volume and fundamentals back the moves, aligning with News Of Los Angeles‘s growth and quality screens
- Narrow leadership means selectivity is critical-focus on stocks with accelerating sales and earnings
- Earnings season could provide the next catalyst for these names to extend gains or trigger sell signals
