Before a turbulent July, Nvidia (NVDA) had reached a “perfect” rating on the stock screen, boasting a top-notch Composite Rating of 99. However, following its highly anticipated earnings report, this once-coveted rating has declined to 91 as the stock struggles to stay above its 10-week moving average, with a noticeable downturn in its relative strength line.
In contrast, twelve stocks have emerged as shining examples, boasting a stellar 99 Composite Rating. These include several mining companies such as Alamos Gold (AGI), Eldorado Gold (EGO), Iamgold (IAG), and Idaho Strategic Resources (IDR). The list also features industry giants Agnico-Eagle Mines (AEM) and Newmont (NEM), whose robust performances in the market have caught investors’ attention.
Additionally, companies in the defense sector, such as Howmet Aerospace (HWM) and Heico (HEI), have made the cut, reflecting the sector’s resilience amid market fluctuations. The healthcare sector is represented by Universal Health (UHS), Pennant (PNTG), and Corvel (CRVL), rounding out a diversified list of high-performing stocks.
While both the Nasdaq and S&P 500 indices hover below their 50-day moving averages, many of these “perfect” stocks have successfully broken out of established patterns and are securely within their buy ranges. This is an important indicator, as stocks generally perform best within strong industry groups, and the Mining-Gold/Silver/Gems sector currently ranks a commendable No. 11 in IBD’s hierarchy of 197 tracked industries.
For instance, a closer look at these top stocks reveals a shared characteristic: all originate from highly ranked industry categories. To qualify for this elite list, stocks must meet strict criteria such as maintaining a Composite Rating of 99, an EPS Rating of 80 or higher, and a Relative Strength Rating that also exceeds 80. Moreover, they should possess an SMR Rating of A or B, trade above $12, and have a daily average volume of at least 400,000 shares.
Nevertheless, it’s crucial to remember that ratings are just one component of a comprehensive stock evaluation. Novice and experienced investors alike should always check stock charts to gain insights into when to buy, sell, or hold various stocks.
This innovative stock screener not only highlights top-rated stocks but also allows investors to leverage powerful research tools like the IBD Stock Screener or MarketSurge to uncover winning stocks. Users can fine-tune their watchlists by tapping into preset filters and insights, like those found in the IBD 50 and IBD Sector Leaders lists.
Additionally, stock checkups will provide pass, neutral, or fail ratings to help consolidate research efforts, offering a clear view of both the fundamental and technical health of any stock on the list. Taking advantage of ratings like the Composite Rating—which considers a company’s earnings growth, relative strength, sales, and institutional demand—can also provide invaluable insights for prospective investments.
However, it’s important to stress that one should not base investment decisions solely on ratings. Investors must also analyze technical actions within stock charts to determine optimal entry and exit points.
In the ever-shifting landscape of the stock market, understanding the current market environment—whether in a bullish, bearish, or volatile phase—is critical for success. Utilizing stock charts can help identify key buying opportunities and warn of potential sell signals.
When seeking potential investments and creating a robust watchlist, always rely on stock charts for an unbiased assessment of a stock’s health.
Investors can stay ahead of the game by continuously reviewing market trends, refining their stock picks, and adjusting their strategies accordingly as they navigate the complexities of today’s dynamic financial environments.