Looking outside the U.S., 10 names appear in IBD's Global Leaders screen of the IBD Stock Screener, a select list of foreign stocks with strong fundamentals that trade in the U.S. stock market. Arm stock and Novo Nordisk stand out.
Danish stock Novo Nordisk and U.K.-based Arm Holdings hold top-notch IBD Composite and Earnings Per Share ratings. Both are in the IBD 50 and Leaderboard.
The only one actionable in the screen is Novo Nordisk.
Novo Nordisk Stock Eases From Buy Point
Novo Nordisk stock is near the 124.87 buy point of a bullish three-weeks-tight pattern, according to MarketSurge pattern recognition. The buy range reaches to 128.62.
Novo stock pulled back on Tuesday after reaching an all-time high of 128.77 on Monday.
Shares gapped up nearly 5.3% on Jan. 31 in heavy volume, after Novo reported higher-than-expected fourth-quarter profit and sales numbers. Its biggest moneymakers are its weight-loss drug Wegovy and diabetes drug Ozempic.
"Our focus in 2024 will be on reaching more patients, progressing and expanding our pipeline as well as the continued significant expansion of our production capacity," said CEO Lars Fruergaard Jorgensen in the earnings release.
Earnings growth improved from 39% to 54%, 69% and 68% the past four quarters. Sales growth accelerated from 24% to 37%, 39% and 41% in the same periods.
Novo Nordisk's current-quarter earnings and sales are expected to slow to a 20% increase, according to FactSet.
Arm Stock Looks For Footing
Arm Holdings appeared in Monday's Global Leaders screen but is pulling back for a second straight day on Tuesday. It did not appear in the screen Tuesday morning.
The AI stock is not currently in a base and has found resistance around the 150 price level. Volume has been declining as the stock fades from its February surge. That could be a sign that sellers are waning.
Shares rallied after the chip designer topped its fiscal third-quarter views and provided bullish current-quarter profit and sales guidance on Feb. 7. Shares gapped up nearly 48% in huge volume the next day and Arm has held much of that increase.
Its December-quarter earnings grew 32% on 14% sales growth. But analysts expect current-quarter EPS to be flat year over year, followed by declines in the next three quarters.
On the bright side, sales estimates look flat for the current quarter, then should grow in the 16%-27% range the following three quarters. Arm stock had its initial public offering on Sept. 14, 2023, at an offering price of 51 a share.
ASML Holding also made the Global Leaders screen, as it comes off an all-time high of over 1,000 reached Monday. The stock is extended from a cup-with-handle base with a 696.97 buy point. Earnings and sales are expected to decline in the current and following quarter.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
