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Investors Business Daily
Investors Business Daily
Business
MATTHEW GALGANI

Microsoft Among 19 Stocks To Watch That Are Launching New Moves

The best stocks to watch offer telltale clues as they prepare to launch breakout moves. The key is to identify those clues while also managing risk. Here's a look at 19 top stocks setting up buy points or buy zones, including Microsoft, STMicroelectronics, Cadence Design Systems, Palo Alto Networks and Texas Roadhouse.

Homebuilders Meritage Homes, PulteGroup, Lennar, Tri Pointe Homes and Taylor Morrison also make this stock screen.

Hershey, Academy Sports & Outdoors, Copart and SciPlay have also found a sweet spot on the list.

To make this screen, each of these stocks to watch must meet the following criteria:

    • Composite Rating of at least 90.
    • EPS Rating of at least 80.
    • RS Rating of at least 80.
    • Accumulation/Distribution Rating A, B or C.
    • Price vs. 21-day moving average at least 1%-5%.
    • RS line within 5% of new high.
    • Price vs, 50-day moving average at least 10%.
    • 10-day line above 21-day line, which must be above 50-day line.
    • Current price at least $12.
    • Average daily volume over 400,000 shares.
Company Symbol Comp Rating EPS Rating RS Rating SMR Rating A/D Rating
Meritage Homes 99 97 96 A B-
Palo Alto Networks 99 97 91 A A-
Cadence Design Systems 98 97 93 A B+
PulteGroup 98 99 95 A C
STMicroelectronics 98 98 95 A C
Tri Pointe Homes 98 97 95 B B
SciPlay 97 93 92 B B
Copart 96 90 92 A B+
Lennar 96 87 92 B B-
Taylor Morrison Home 96 98 95 B C-
Texas Roadhouse 96 84 92 A B+
Wingstop 96 98 98 - B-
CBOE Global Markets 95 86 84 A B+
Hershey 95 88 86 A A
Microsoft 94 85 83 A A-
Bruker 92 89 92 B C-
Academy Sports & Outdoors 91 93 96 C B-
Thomson Reuters 91 98 90 C B-
Takeda Pharmaceutical 90 89 87 C B-
Data as of March 29, 2023

MSFT Among Stocks To Watch In Or Near A Buy Zone

While not buy recommendations, the screen above highlights MSFT stock, PANW stock and other companies showing both fundamental and technical strength.

But given the current market correction, buying stocks in this environment is risky. The odds of a successful and sustained breakout are much better in a strong uptrend.

Several of these leading stocks to watch are also featured on IBD stocks lists because of their strength across key stock ratings and metrics.

With their track records of stable earnings growth and enduring relative strength, CDNS and MSFT stock earn placement on IBD Long-Term Leaders. CDNS stock also lands a spot on the IBD Big Cap 20.

The IBD 50 has a slew of names on this screen, including Cadence, PulteGroup, Meritage Homes, Tri Pointe and Copart.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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