In today's IBD Screen of the Day, the focus is on stocks that funds are buying. Institutional investors tend to be more sophisticated, so retail buyers can gain by tracking their selections. Here are two oil stocks and one chipmaker that make the list.
Northern Oil & Gas broke out Tuesday from a cup-with-handle and is in buy range past its buy point of 25.57.
Oil stocks have made an impressive recovery over the past several months on a mix of supply and demand factors, and as Russia continues its attack on Ukraine, which has pushed the price of crude oil to over $110 per barrel.
In the most recent December-ended quarter, sales jumped 178% and profits came in at 84 cents a share, showing a rise of 65%. This well exceeds IBD's CAN SLIM requirements for top growth stocks.
Oil Stocks Gain As Oil Prices Surge
Additionally, the firm is part of the U.S. oil and gas drilling and exploration group, which ranks No. 5 of the 197 IBD industry groups. This shows market leadership and is a key component in finding top stocks to buy and watch.
The relative strength line is moving higher and it is one of the top 2% of stocks in terms of market performance over the past 12 months.
The firm operates in the Bakken and Three Forks areas of the Williston Basin of North Dakota and Montana.
Another oil stock to watch is Ranger Oil, which is trying to break out from its base, though its shares slipped about 1% today. The chart could be interpreted as a cup base with a 35.41 buy point, according to MarketSmith analysis.
The oil stock has been holding above its 50-day moving average as it trades around the top of its base. ROCC ranked 33rd in its industry group, although it has a strong IBD Composite Rating of 95.
Chipmaker Shines As It Approaches Buy Point
Alpha & Omega Semiconductor is still in a cup-with-handle as the chipmaker approaches a buy point of 59.48, according to IBD MarketSmith. Alpha & Omega makes power-management semiconductors. Its chips are used in computers, consumer electronics, home appliances and other devices.
On Feb. 7, the Sunnyvale, Calif.-based company reported better-than-expected results for its fiscal second quarter ended Dec. 31. It earned an adjusted $1.20 a share, up 85% year over year, on sales of $193.3 million, up 22%.
Alpha & Omega also guided higher for the current quarter. For its fiscal third quarter ending March 31, Alpha & Omega forecast revenue of $194 million, up 15% year over year. Analysts covering AOSL stock had been looking for sales of $184.4 million in the period.
However, with the market in correction, investors need to be cautious.
Make Your Own Screens Of The Day
In a positive sign, the relative strength line for AOSL stock is near recent highs as the stock outperforms the S&P 500 index. AOSL stock ranks first out of 30 stocks in IBD's fabless chipmaker industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 97 out of 99.
With thousands of names to choose from, how can you efficiently find the best stocks to buy and watch? Zero in on top growth stocks that fit your criteria with IBD Stock Screener and the IBD Stock Of The Day.
Investors can build their own screens from scratch, or start with IBD stock lists like the IBD 50, Sector Leaders, Big Cap 20 and IPO Leaders.
From earnings and sales growth to IPO date, dividend yield, current quarter EPS estimates and more, the screener is a valuable tool.
Follow Michael Molinski on Twitter @IMmolinski
