Today's IBD Screen Of The Day focuses on the Global Leaders list of the IBD Stock Screener, which includes a few oil stocks, biotechs and more. The screen looks for foreign-based companies with solid IBD Ratings that are near new highs.
Focusing on foreign investments can offer investors more diversification in their portfolio, especially when domestic companies face economic challenges.
Alkermes, Flex LNG, Equinor and BHP Group are all setting up in new bases with fresh buy points. Also, they represent several sectors.
Analyzing Oil Stocks
Two oil and gas related companies made the list as rising oil prices have greatly benefited these firms. First, Flex LNG, a liquefied natural gas transporter, has a 32.87 buy point and is trading 18% below this area. The Bermuda-based company reported Q1 earnings on May 12, which boosted the stock.
Shares have slipped slightly below their 50-day moving average in recent days but may still be able to regain this area. The oil stock's relative strength line has tapered off lately but remains near highs.
Flex LNG's EPS has also tapered off and decelerated in recent quarters. Earnings growth on a year-over-year basis has slowed from 786% to 171% to 19% in the most recent quarters. Meanwhile, sales growth has shrunk from 147% to 70% to a decline of 8% in the March-ended quarter.
While it was a tough first quarter for the company, the firm has bright days on the horizon, at least analysts seem to think so. According to MarketSmith data, full-year EPS is expected to grow another 12% in 2023 to $3.39 a share after a drop of 1% this year.
Another oil stock on the list is Equinor, which is trading above its 50-day line. The stock's RS line is also hitting new highs on the weekly chart. Equinor is an integrated oil and gas firm, which means it engages in all areas of the oil and gas pipeline, including the exploration, production, refinement and distribution of the product. Many firms, like Flex LNG, only specialize in one main segment.
Equinor is forming a cup base with 39.25 buy point, according to MarketSmith analysis. Shares are trading just 5% below the buy point. While Equinor shows decelerating earnings on a year-over-year basis, growth still remains high. For its March-ended quarterly results, EPS rose 300% from the same period a year ago while sales were up 109%. This well exceeds IBD's CAN SLIM requirements for investing.
Ireland-Based Biotech Excels On Earnings
Alkermes, a biotech that develops treatments based on proprietary drug delivery technology, is in a 33-week-old cup-with-handle base with 32.89 buy point. The stock attempted to break out from a prior base near the end of April, before moving lower to form the current handle.
On April 27, Alkermes reported a strong first quarter, showing excellent sales of its new bipolar treatment, Lybalvi. Alkermes won Food and Drug Administration approval for Lybalvi a year ago. Lybalvi sales were $14 million in the first quarter, above forecasts for $10 million.
All three of the company's wholly owned drugs beat expectations. During the first quarter, Alkermes earned 12 cents per share, minus some items, on $279 million in sales. Earnings climbed by a penny year over year and easily beat analyst projections for 3 cents per share. Sales topped forecasts by about $22 million and grew nearly 11%.
Australia-based Mining Firm Sets Up Buy Point
BHP Group is also setting up in a base. Shares are trying to reclaim their 50-day line and remain 11% below their 79.76 entry. The stock also boasts excellent IBD Ratings, including a 98 Composite Rating, a 97 EPS Rating and a 91 RS Rating.
For its full-year 2022 earnings, analysts expect EPS of $8.08, which represents year-over-year growth of 36%. The stock is part of the metal ores mining industry group, which has been climbing the ranks recently. The group currently ranks No. 37 out of the 197 groups IBD measures.
Follow Fox on Twitter at @IBD_RFox for more analysis other oil stocks and stocks breaking out.
