So far showing it knows how to take a punch, artificial intelligence juggernaut Nvidia has endured a recent rash of selling, including a sell-off that one analyst viewed as a "wake-up call" for investors. But despite recent woes, Nvidia stock still commands the highest-possible 99 Composite Rating. Fellow semiconductor industry leaders Broadcom and Arm Holdings join Nvidia among 25 "perfect" stocks highlighted by this stock screener.
Flexing its muscles in the AI and other markets, Arm Holdings was profiled in The New America column on Friday.
While Nvidia shows resilience and maintains support above its 10-week moving average, investors should continue to look for any signs of sector rotation. Note that after Nvidia reigned supreme on last month's list of new buys by the best mutual funds, it went AWOL in July. ARM stock, on the other hand, earned a spot on this screen both months.
While not classified as one of the Magnificent Seven stocks alongside Microsoft, Apple and Nvidia, Broadcom has almost the same market cap weighting on the Nasdaq as Mag 7 member Tesla.
Nvidia, Apple Put 8 'Secrets' Of Selling In Focus. No. 2 Is Key.
Warren Buffett Likes This 'Perfect' IPO Leader
Sharing a 99 Composite Rating with Nvidia and Broadcom, Brazilian bank Nu Holdings has landed a spot on the IPO Leaders screen. ARM stock recently fell off that list as it retreated from recent highs.
Warren Buffett-led Berkshire Hathaway owns shares of Nu stock, according to a May 15 filing. Nu stock flashed a negative reversal June 24 but bounced back the next day. After breaking out in June, the stock has now climbed just out of buy range. The Warren Buffett stock and 2021 IPO now trades right around its all-time high.
AI Play SMCI Dips Along With Other Techs
Super Micro Computer, which recently introduced liquid-cooled AI data center systems running the latest Nvidia chips, also makes this elite list stocks with a 99 Composite Rating. After jumping back above its 50-day moving average last month, SMCI stock held support at and bounced off that benchmark line until falling back below it this week.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
Nvidia, Broadcom Among Top Stocks In Top Groups
All the names on this stock screen hail from the top-ranked industry groups — a factor worth noting because winning stocks tend to come from the top-ranked groups among the 197 industries that IBD tracks. This screen highlights the Top 20 industries.
For example, the fabless semiconductor group — home to Nvidia, Broadcom and Arm — ranks No. 10, according to MarketSurge.
Stock Screener Highlights Top-Rated Industry Leaders
| Company | Symbol | Comp Rating | Ind Group Rank | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Agnico-Eagle Mines | AEM | 99 | 4 | 97 | 91 | B | B+ |
| Argan | AGX | 99 | 8 | 90 | 95 | B | A- |
| Arm Holdings | ARM | 99 | 10 | 99 | 99 | A | B |
| Broadcom | AVGO | 99 | 10 | 87 | 95 | A | D |
| Banco Latinamer | BLX | 99 | 14 | 94 | 90 | A | A |
| Cipher Mining | CIFR | 99 | 17 | 81 | 98 | A | A- |
| Fortuna Mining | FSM | 99 | 4 | 91 | 91 | B | B+ |
| Granite Construction | GVA | 99 | 8 | 92 | 93 | B | A- |
| Halozyme Therapeutics | HALO | 99 | 19 | 99 | 93 | A | A- |
| Harmony Gold Mining | HMY | 99 | 4 | 99 | 97 | A | C+ |
| IamGold | IAG | 99 | 4 | 81 | 93 | B | B- |
| Interactive Brokers | IBKR | 99 | 16 | 98 | 87 | A | D |
| ICICI Bank | IBN | 99 | 14 | 97 | 83 | A | A- |
| Inter | INTR | 99 | 14 | 81 | 94 | B | A- |
| Iron Mountain | IRM | 99 | 9 | 88 | 94 | A | B+ |
| Jefferies Financial Group | JEF | 99 | 16 | 84 | 93 | B | A |
| Nu Holdings | NU | 99 | 14 | 81 | 93 | A | B+ |
| Nvidia | NVDA | 99 | 10 | 99 | 98 | A | D- |
| Piper Sandler | PIPR | 99 | 16 | 89 | 96 | B | A+ |
| SIGA Technologies | SIGA | 99 | 19 | 81 | 95 | A | B+ |
| Super Micro Computer | SMCI | 99 | 5 | 99 | 98 | A | C+ |
| Texas Pacific Land | TPL | 99 | 1 | 91 | 94 | A | B+ |
| United Therapeutics | UTHR | 99 | 19 | 93 | 93 | A | A+ |
| Vertex | VERX | 99 | 17 | 97 | 95 | A | A- |
| Vital Farms | VITL | 99 | 12 | 81 | 99 | B | B- |
Data as of July 19, 2024
Broadcom, Nvidia Among Best Stocks To Watch
To make this screen of top stocks to watch in the top-ranked industries, each company must meet the following criteria:
- Industry group rank: from 1 to 20 (on IBD's 197 industries list).
- Composite Rating: 99.
- EPS Rating: 80 or higher.
- Relative Strength Rating: 80 or higher.
- SMR Rating: A or B.
- Current share price: $12 or more.
- 50-day daily average volume: 400,000 shares or more.
However, ratings of course are just one part of the equation when evaluating a stock. Be sure to always check the stock chart to gauge when to buy, sell or hold.
Stock Screener: Build Your Watchlist With Stock Ratings And Stock Lists
Running stock screens with the IBD Stock Screener or MarketSurge is an effective way to streamline your research to find top-rated stocks to watch like Nvidia, Broadcom and Cava.
You can also zero in on the best stocks to watch using IBD stocks lists based on a wide range of preset filters. You'll find top-rated stocks meeting the criteria of the IBD 50, IBD Sector Leaders, IBD Big Cap 20, IPO Leaders and more.
Currently, you'll find NU stock on IPO Leaders. ARM stock makes the IBD 50 alongside Nvidia, while SMCI earns a spot on the IBD Big Cap 20.
Once you've put together potential stock picks for your watchlist, you'll want to evaluate your ideas with IBD Stock Checkup. With pass, neutral or fail ratings for each of your stocks, IBD Stock Checkup provides a detailed look at both the fundamental and technical health of the companies on your watchlist.
Additionally, based on the CAN SLIM system, the Composite Rating provides an overall score that takes into account each of the IBD ratings. The single score considers how a company and its stock are performing in terms of annual and quarterly earnings growth as well as its relative strength vs. the rest of the market. The score also accounts for sales, profit margins and institutional demand.
However, note that you should not buy a stock solely on its ratings or placement on one of IBD's stock lists. No matter how compelling a company's story may seem, savvy investors will always check the technical action in the stock chart before buying.
Check The Chart To Know When To Buy Nvidia, Arm And Others
Using stock lists helps you zero in on the best stocks to watch. Stock ratings look under the hood to diagnose a company and its stock's fundamental and technical health. Both stock lists and stock ratings help you understand what to buy. But to fully understand when to buy stocks, take a look at the stock chart.
Meanwhile, it's also critical to understand what type of environment you're currently in. Is it a bull market, when most stocks go up? Or a bear market, when most stocks go down? Or is it a volatile, choppy and uncertain time when the market indexes tend to fail to make any sustained headway?
Use stock charts to evaluate both the market indexes and individual stocks. Charts will help you pinpoint the best time to buy stocks by identifying support and resistance, as well as buy points and buy zones. Using charts also helps you identify warning signs and when to sell stocks.
So when searching for potential stock picks and stocks to watch, always check the charts. They provide the most unbiased diagnosis of a stock's health.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
