A new battering of the FANG names and growth stocks hurt major indexes across the board. However, even amid weakness in stocks today, money appeared to continue shifting into companies that show lower price-to-earnings multiples yet still possess solid growth in their sales and earnings.

Names such as Verizon Communications (VZ), Tractor Supply (TSCO), Intel (INTC) and Microsoft (MSFT) strengthen the notion that institutional investors are still seeking to accumulate stocks amid a U.S. economy that continues to grow.

Before the open, the government announced that the initial reading on third-quarter GDP showed an annualized increase of 3.5%. Observers say that's well above the so-called "growth potential" of 2%. Year over year, gross domestic product rose 3%. That marked the biggest increase since the second quarter of 2015.

Verizon, Emerging Leader

Verizon and Tractor Supply hold positions within IBD Leaderboard. The top growth stocks in Leaderboard have sharply outperformed the S&P 500 year to date.

Tractor Supply, currently among three stocks listed on the Watch List section of Leaderboard, gained 2% to 91.09 in fast turnover and is showing bullish support near the 50-day moving average in recent weeks.

The Nasdaq composite fell around 0.5% in afternoon trading after being down more than 3.5%.

At the day's low of 7057, the tech-driven composite index has now fallen as much as 13.2% below its all-time peak of 8133.

The S&P 500 fell 0.7% Friday, the Dow Jones industrial average 0.5%. Within the 30-stock Dow, Intel and 3M (MMM) led the upside with gains of 1 point or more. Intel reported late Thursday a 39% leap in third-quarter profit to $1.40 a share. Revenue grew 19%, notching a fourth quarter in a row of top-line growth acceleration.

These Growth Stocks Are Falling Harder Than The Market

Meanwhile, Grubhub (GRUB), Ferrari (RACE), Align Technology (ALGN) and Advanced Micro Devices (AMD) have all gotten hit very hard in the past few weeks. All four have not only triggered a key sell signal by undercutting the 50-day moving average in blasting volume. All four stocks have also dove well below their long-term 200-day and 40-week lines.

Ferrari, however, is edging higher on a weekly basis. But a prolonged period of time spent below the 10-week moving average, at least eight to nine weeks, would indicate a longer hibernation may be in the works.

Investors who have tremendous profit cushions could decide to hold and see if new bases will form. Otherwise, locking in profits before they completely round-trip into losses is the smart move.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.