Prior to a volatile July, Nvidia (NVDA) achieved “perfect” status on this screen, highlighting companies with the highest overall rating of 99. However, following the artificial intelligence giant’s long-awaited earnings report, Nvidia stock saw its relative strength line decline and its rating drop to 92 as it failed to hold support at its 10-week moving average.
Meanwhile, 14 stocks, including miners Alamos Gold (AGI), Eldorado Gold (EGO), IamGold (IAG), and Idaho Strategic Resources (IDR), are all in the gold with a composite rating of 99. Agnico Eagle Mines (AEM) and Newmont (NEM) also made the list.
This includes defense-related stocks Howmet Aerospace (HWM) and Heico (HEI).
With the Nasdaq dropping below its 10-week line and the S&P 500 clinging to its benchmark, many of these “perfect” stocks have broken out and risen above their buy ranges.
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Mining and gold stocks lead top group of top picks
All of the stocks on this stock screen are from the top-ranked industry groups. This is a notable factor because, among the 197 industries IBD tracks, the winning stocks tend to come from the top-ranked groups. This screen highlights the top 20 industries.
For example, rising gold prices have helped the Mining – Gold/Silver/Jewelry group rank as high as 10th out of the 197 groups tracked by IBD, according to MarketSurge.
Stock Screener Highlights Top Industry Leaders
Company Symbol Fee Rating Industry Group Rank EPS Rating RS Rating SMR Rating A/D Rating Agnico-Eagle Mines AEM 99 10 97 95 BB Alamos Gold AGI 99 10 93 91 AB Bank7 BSVN 99 14 93 96 AB Eldorado Gold EGO 99 10 87 90 BB First Bank (NJ) FRBA 99 12 93 88 A A- Heico Corp HEI 99 18 91 92 AA Howmet Aerospace HWM 99 18 93 96 A B- IamGold IAG 99 10 81 97 B B+ Idaho Strategic Resources IDR 99 10 81 98 B A+ Live Oak Bancshares LOB 99 16 98 89 B A- Newmont NEM 99 10 88 93 B B- Pennant Group PNTG 99 3 87 99 AB Third Coast Bankshares TCBX 99 14 94 93 A A- Universal Health UHS 99 8 91 96 B B+
Data as of September 5, 2024
Mining stocks are among the best stocks to watch
To select the top stocks to watch in top-ranked industries, each company must meet the following criteria:
But of course, ratings are only one factor when evaluating a stock — be sure to check the stock chart to determine when to buy, sell, or hold.
Stock Screener: Create a watchlist with stock ratings and stock lists
Running a stock screen using IBD Stock Screener or MarketSurge is an effective way to streamline your research and find top-tier stocks to watch.
You can also narrow down the best stocks to watch by using IBD stock lists based on a variety of pre-set filters. You’ll find top-rated stocks that meet criteria such as the IBD 50, IBD Sector Leaders, IBD Big Cap 20, IPO Leaders, and more.
Once you’ve compiled a list of potential stock picks for your watchlist, evaluate your ideas with IBD Stock Checkup, which provides a pass, neutral or fail rating for each stock and takes an in-depth look at both the fundamental and technical soundness of the companies on your watchlist.
Additionally, based on IBD methodology, the Composite Rating provides an overall score that takes into account each IBD Rating. The single score takes into account how the company and its stock are performing in terms of annual and quarterly earnings growth and relative strength to the overall market. The score also takes into account sales, profit margins and institutional demand.
However, it’s important to note that you shouldn’t buy a stock solely based on its rating or ranking on IBD’s stock list: No matter how compelling a company’s story may seem, a smart investor will always check the technical movement of the stock chart before buying.
Check the charts to know when to buy stocks
A stock list helps you narrow down the best stocks to watch. A stock rating looks under the hood to diagnose the fundamental and technical soundness of a company and its stock. Both stock lists and stock ratings can help you understand what to buy. But to fully understand when to buy a stock, look at the stock chart.
However, it is also important to understand what environment we are currently in. Are we in a bull market where most stocks are rising? Or a bear market where most stocks are falling? Or a period of instability, volatility, and uncertainty where market indexes tend not to make sustained advances?
Use stock charts to evaluate both market indexes and individual stocks. Charts can help you pinpoint the best time to buy a stock by identifying support and resistance, buy points and buy zones. Charts can also help you identify warning signs and when to sell a stock.
So when looking for potential stock picks or stocks to watch, always check the charts as they provide the most unbiased diagnosis of a stock’s health.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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