Before a volatile July, Nvidia (NVDA) achieved a “perfect” status on this screen, highlighting companies with the highest possible 99 Composite Rating. However, after the much-anticipated earnings report, Nvidia stock slipped to a rating of 92 as it struggled to maintain support at its 10-week moving average, causing its relative strength line to decline.
On the other hand, 14 stocks, including mining companies Alamos Gold (AGI), Eldorado Gold (EGO), Iamgold (IAG), and Idaho Strategic Resources (IDR), all shine with a 99 Composite Rating. Agnico-Eagle Mines (AEM) and Newmont (NEM) have also made it to the list.
Furthermore, defense stocks Howmet Aerospace (HWM) and Heico (HEI) have been included.
With the Nasdaq below their 10-week lines and the S&P 500 barely holding on, many of these top-rated stocks have broken out and surpassed their buy range.
How Nvidia Is Establishing a Competitive Moat Against AI Competitors
Leading Stocks in Top Industry Groups
All the companies on this stock screen belong to the top-ranked industry groups, which is significant as successful stocks often emerge from the highest-ranked groups among the 197 industries tracked by IBD. This screen highlights the Top 20 industries.
For instance, driven by gold prices, the Mining-Gold/Silver/Gems group holds a high rank of No. 10 among the 197 groups tracked by MarketSurge.
Stock Screener Showcasing Industry Leaders
| Company | Symbol | Comp Rating | Ind Group Rank | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Agnico-Eagle Mines | AEM | 99 | 10 | 97 | 95 | B | B |
| Alamos Gold | AGI | 99 | 10 | 93 | 91 | A | B |
| Bank7 | BSVN | 99 | 14 | 93 | 96 | A | B |
| Eldorado Gold | EGO | 99 | 10 | 87 | 90 | B | B |
| First Bank (NJ) | FRBA | 99 | 12 | 93 | 88 | A | A- |
| Heico Corp | HEI | 99 | 18 | 91 | 92 | A | A |
| Howmet Aerospace | HWM | 99 | 18 | 93 | 96 | A | B- |
| IamGold | IAG | 99 | 10 | 81 | 97 | B | B+ |
| Idaho Strategic Resources | IDR | 99 | 10 | 81 | 98 | B | A+ |
| Live Oak Bancshares | LOB | 99 | 16 | 98 | 89 | B | A- |
| Newmont | NEM | 99 | 10 | 88 | 93 | B | B- |
| Pennant Group | PNTG | 99 | 3 | 87 | 99 | A | B |
| Third Coast Bancshares | TCBX | 99 | 14 | 94 | 93 | A | A- |
| Universal Health | UHS | 99 | 8 | 91 | 96 | B | B+ |
Data as of Sept. 5, 2024
Top Stocks to Watch in the Best Industries
To qualify for this list of top stocks to watch in the top-ranked industries, each company must meet specific criteria:
While ratings are essential, they are just one aspect to consider when evaluating a stock. Always analyze the stock chart to determine when to buy, sell, or hold.
Utilize Stock Ratings and Lists to Build Your Watchlist
Utilizing the IBD Stock Screener or MarketSurge for running stock screens is an efficient way to streamline your research and discover top-rated stocks to monitor.
You can narrow down your search for the best stocks to watch by using IBD stock lists based on various preset filters. These lists include top-rated stocks meeting the criteria of the IBD 50, IBD Sector Leaders, IBD Big Cap 20, IPO Leaders, and more.
Once you have compiled potential stock picks for your watchlist, assess your ideas with IBD Stock Checkup. This tool provides pass, neutral, or fail ratings for each stock on your watchlist, offering a detailed examination of both fundamental and technical aspects of the companies.
Moreover, based on The IBD Methodology, the Composite Rating delivers an overall score considering various IBD ratings. This score evaluates a company’s performance in terms of annual and quarterly earnings growth, relative strength against the market, sales, profit margins, and institutional demand.
However, it is crucial to remember that buying a stock solely based on ratings or its placement on an IBD stock list is not recommended. Savvy investors always analyze the technical aspects of the stock chart before making decisions.
Timing Your Stock Purchases with Chart Analysis
Utilizing stock lists helps identify top stocks to watch, while stock ratings evaluate a company’s fundamental and technical health. Both tools aid in understanding what to buy. However, understanding when to buy stocks requires a thorough examination of the stock chart.
Furthermore, it is essential to comprehend the current market environment. Are you in a bull market, where most stocks rise, or a bear market, where most stocks decline? Or is it a volatile, uncertain period when market indexes struggle to make consistent progress?
Use stock charts to evaluate market indexes and individual stocks. Charts assist in pinpointing the ideal time to buy stocks by identifying support, resistance, buy points, and buy zones. Additionally, charts help recognize warning signs and determine when to sell stocks.
Therefore, always refer to the charts when researching potential stock picks and stocks to watch. They offer an unbiased assessment of a stock’s health.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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