As the tech-heavy Nasdaq gets hit, Nvidia joins Broadcom, Super Micro Computer and Arm Holdings among stocks to watch with a 'perfect' 99 Composite Rating, the highest-possible score. IPO Leader Cava Group, as well as fellow restaurant stock Texas Roadhouse, also command a seat at that table.
In total, 17 companies with a 99 Composite Rating make this stock screen, including Carpenter Technology, Deckers Outdoor, Emcor and Neurocrine Biosciences.
The 99 Composite Rating for all these companies puts them among the top 1% of all stocks in terms of key stock-picking factors.
This stock screener also highlights a total of 38 leading companies — including Nvidia, Broadcom and others — earning a 95 or better Composite Rating, putting them in the top 5% of all stocks. Scroll down to see the full list.
Inestors should, however, keep in mind that even the most highly rated stocks can retreat when the major indexes come under pressure. IBD's recommended market exposure has now dropped from 80%-100% to 20%-40% as the S&P 500 and Nasdaq fail to hold support at their 50-day moving averages.
Nvidia stock, for example, recently formed a flat base with a 974 buy point. And AVGO stock has set up a potential entry in consolidation pattern. But both of these leading AI stocks are feeling the heat as the market rally gets called into question.
So with stocks like Nvidia, Broadcom, Cava and more that have made impressive gains, stay on the alert for the eight "secrets" for when to sell stocks. Such rules help investors lock in gains as well as minimize damage from any pullbacks.
Need Help Navigating This Troubled Market? Join An IBD Meetup Group
Nvidia, Broadcom Among Top Stocks In Top Groups
All the names on this stock screen hail from today's Top 20 industry groups — a factor worth noting since winning stocks tend to come from the top-ranked groups among the 197 industries that IBD tracks.
Investors can use IBD Stock Checkup to track group rankings and ratings for each of these stocks to watch. Each company on this stock screen is outpacing at least 95% of all stocks in terms of key stock-picking factors.
Use This Stock Screener To Build Custom Filters And Watchlists
Stock Screener Highlights Top-Rated Industry Leaders
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| ACM Research | ACMR | 99 | 99 | 97 | A | B+ |
| Arm Holdings | ARM | 99 | 99 | 97 | A | B- |
| Broadcom | AVGO | 99 | 88 | 94 | A | B- |
| Azek | AZEK | 99 | 97 | 95 | B | B- |
| Blue Bird | BLBD | 99 | 81 | 96 | A | B |
| Cava Group | CAVA | 99 | 81 | 94 | A | B+ |
| Carpenter Technology | CRS | 99 | 82 | 92 | B | B+ |
| Deckers Outdoor | DECK | 99 | 99 | 94 | A | D+ |
| Emcor Group | EME | 99 | 98 | 97 | A | B- |
| Neurocrine Biosciences | NBIX | 99 | 93 | 81 | A | B- |
| Nvidia | NVDA | 99 | 99 | 98 | A | D+ |
| nVent Electric | NVT | 99 | 93 | 94 | A | D+ |
| Quanta Services | PWR | 99 | 97 | 92 | A | B- |
| Super Micro Computer | SMCI | 99 | 94 | 99 | A | A- |
| Texas Roadhouse | TXRH | 99 | 88 | 92 | A | B |
| Veeco Instruments | VECO | 99 | 97 | 91 | B | B- |
| Vertiv | VRT | 99 | 97 | 99 | A | B |
| American Express | AXP | 98 | 93 | 91 | A | D+ |
| Martin Marietta | MLM | 98 | 97 | 92 | A | B- |
| Block | SQ | 98 | 97 | 85 | B | C- |
| Core & Main | CNM | 97 | 89 | 97 | B | B+ |
| Garmin | GRMN | 97 | 90 | 90 | A | B- |
| Gates Industrial | GTES | 97 | 84 | 92 | B | A+ |
| Hubbell | HUBB | 97 | 95 | 92 | A | C+ |
| Knife River | KNF | 97 | 82 | 96 | B | C |
| NetApp | NTAP | 97 | 89 | 91 | B | A- |
| Owens Corning | OC | 97 | 97 | 89 | B | C |
| Qualcomm | QCOM | 97 | 86 | 90 | B | B- |
| Wabtec | WAB | 97 | 89 | 91 | B | B- |
| Applied Materials | AMAT | 96 | 87 | 94 | A | C+ |
| CRH | CRH | 96 | 97 | 91 | B | D |
| First Watch Restaurant | FWRG | 96 | 81 | 89 | B | B- |
| Nuvei | NVEI | 96 | 82 | 92 | A | B+ |
| Pure Storage | PSTG | 96 | 92 | 96 | A | B |
| Summit Materials | SUM | 96 | 88 | 80 | B | D+ |
| Ametek | AME | 95 | 90 | 83 | A | C |
| Armstrong Worldwide Industries | AWI | 95 | 84 | 94 | A | B+ |
| Photronics | PLAB | 95 | 96 | 84 | A | D+ |
Data as of April 19, 2024
Nvidia, Broadcom 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: 95 or higher.
- 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.
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 CAVA stock on IPO Leaders. Nvidia and Broadcom both earn a spot on the IBD Big Cap 20 screen. Nvidia also makes the IBD 50 and IBD Sector Leaders, our most stringent screen.
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, Cava 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.
