Funds are buying names from several sectors, a trend found in today's IBD Screen Of The Day. Here is a look at some of the top stocks to watch that institutions are accumulating, using the IBD Stock Screener.
Amid soaring energy demand and further sanctions on Russian crude, IBD's Oil & Gas Drilling group has been red-hot — ranking second of IBD's 197 industries.
Offshore oil contractor Noble has seen heightened demand for its services. Most recently, it reported contract revenue of $195 million and a record $1.7 billion in backlog, including $700 million alone over the last quarter.
Shares of Noble are consolidating in a cup base. MarketSmith has identified a 36.89 buy point. The company was highlighted earlier this month in this column as a stock that funds are buying.
Stock To Watch: Zim Continues To Deliver
Institutional investors betting on continued supply-chain issues have flocked to Israel-based Zim Integrated Shipping. The company posted strong results for its first-quarter earnings, reported May 18.
Earnings per share of $14.19 beat analyst estimates of $12.97, while revenue of $3.7 billion represented a 113% increase over a year prior. Exceptional growth was seen as increased demand pushed shipping and freight rates higher. Zim Shipping also increased forward guidance and is now expecting EBITDA of around $8 billion for 2022.
Despite the beat, shares traded more than 5% lower, mainly due to the broader market selling off on worries of an economic slowdown. Nevertheless, ZIM stock has since recovered and is now trading with a relative strength line at new highs. Zim Shipping is in a deep base with a 79.05 buy point.
Chinese Solar Company Signs Deal For Panels In Europe
Amid Russian sanctions, Europe is desperately looking for energy options to supply domestic needs. China-based JinkoSolar — one of the largest solar panel manufacturers in the world — is entering the market, signing its first European Energy Storage Solution (ESS) agreement with Memodo GmbH.
In the agreement, Memodo will grant JinkoSolar exclusive rights to the German, Swiss and Austrian markets.
JKS stock was up more than 8% May 13 on the news and has continued higher. Its relative strength line is near highs. The stock is forming a messy base, though a handle buy point can be identified at 60.10. JKS is another stock to watch as the market tries to find a bottom.
