In today's IBD Screen of the Day, the focus is on the Global Leaders list. Despite the weakness in the market, there are some stocks displaying strength and forming strong patterns. Here are some of the names to watch.
Flex LNG rallied nearly 7% in afternoon trading. The marine-based natural gas transporter has benefited from rising natural gas prices, which have led to an increased demand for services.
This strong demand led to an impressive fourth quarter, with the company reporting record levels of revenue and net income. Results also marked sharp increases from just a quarter prior. In Q4 the average revenue per vessel per day came in at $95,908, significantly higher than $68,341 in Q3.
Demand for natural gas transportation is expected to increase amid the geopolitical conflict with Russia — a key natural gas provider to Europe. As it stands, Flex LNG already has Composite and Relative Strength Ratings of 98 and a top EPS Rating of 99.
Flex LNG is forming a cup base with a 26.36 buy point, according to MarketSmith pattern recognition.
Alpha & Omega Semiconductor Leads Chip Stocks
While the chip shortage has gained fewer headlines recently, the underlying issues are still prevalent. Alpha and Omega Semiconductor is the leader in IBD's chip designers industry group, beating out more popular names such as Nvidia and Advanced Micro Devices.
This is largely thanks to impressive profit growth. Earnings per share reported at $2.93 this past year was a significant rise from 88 cents in 2020. Future projections have growth continuing with EPS projected to increase 57% to $4.93 in 2022.
Alpha & Omega Semiconductor is forming a cup with handle and has a 59.48 buy point. The company is today's IBD Stock of the Day.
Other Global Leaders To Watch
Commercial real estate giant Cushman & Wakefield last week reported fourth-quarter results that exceeded pre-pandemic levels. Overall growth is expected to continue, with 2022 EPS projected to increase 15%. U.K.-based Cushman & Wakefield was nearing a 22.87 buy point in a flat base. But the stock retreated more than 5% Monday afternoon.
Ireland-based Steris is also forming a cup-with-handle pattern, with a relative strength line at all-time highs. The company — involved in infection prevention and surgical products — has shown some solid results. It ranks second in the medical services group.
While supply chain bottlenecks have been challenging for Steris, demand is expected to continue to be strong. The company is expecting 11% revenue growth for 2022.
