Stock market history shows that the best stocks to buy and watch often hail from the top-ranked industry groups. As last year’s bear market ravaged the tech sector, bellwether names like Microsoft (MSFT), Adobe[ticker symb=ADBE], Oracle (ORCL), Broadcom (AVGO), Applied Materials (AMAT) and ASML (ASML) fell out of favor.
But boosted by the buzz around artificial intelligence, Nvidia (NVDA) and others, Wall Street has regenerated its interest in tech stocks. That has lifted several groups in the tech sector back into they top rankings as MSFT, AVGO, ORCL, AMAT, ASML and a slew of others lead the charge.
Several, such as Super Micro Computer (SMCI), Rambus (RMBS) and AMAT stock have powered well beyond recent breakouts. Yet others on this stock screen remain in or near a buy zone. Mobileye (MBLY), Monolithic Power Systesm (MPWR) and AMAT stock are jut some names that fit that bill.
Top Stocks To Watch In Top Industry Groups
To make this screen of top stocks to watch in the top-ranked industries, each company must meet the following criteria:
Industry group rank: between 1 and 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.
Accumulation/Distribution Rating: A or B.
Current share price: $12 or more.
50-day average volume: 400,000 shares or more.
From AMAT, ASML and AVGO to Axcelis Technologies (ACLS), HubSpot (HUBS) and RMBS stock, several of these leaders in top-ranked industry groups sport the highest-possible 99 Composite Rating.
Scan the list below and click the symbols to check the stock chart for any bases and buy zones.
Best Stocks To Watch In Top-Ranked Industries
Company
Symbol
Comp Rating
EPS Rating
RS Rating
SMR Rating
A/D Rating
Axcelis Technologies
(ACLS)
99
96
99
A
A-
Applied Materials
(AMAT)
99
88
93
A
B
Amphastar Pharm
(AMPH)
99
99
95
A
B
ASML Holding
(ASML)
99
95
94
A
B
Broadcom
(AVGO)
99
96
97
A
A+
DoubleVerify
(DV)
99
91
95
B
B
HubSpot
(HUBS)
99
99
96
B
B
Lantheus
(LNTH)
99
95
94
A
B
Monster Beverage
(MNST)
99
86
91
B
B-
Rambus
(RMBS)
99
97
99
A
A+
Adobe
(ADBE)
98
95
91
A
B+
Cadence Design Systems
(CDNS)
98
96
94
A
A
Core & Main
(CNM)
98
96
90
A
A-
Green Brick Partners
(GRBK)
98
92
98
A
B+
Mobileye Global
(MBLY)
98
94
96
A
B
Monolithic Power Systems
(MPWR)
98
98
90
A
A
Oracle
(ORCL)
98
83
94
A
B+
PulteGroup
(PHM)
98
99
96
A
B
Photronics
(PLAB)
98
97
85
B
A+
Super Micro Computer
(SMCI)
98
95
99
A
A
Synopsys
(SNPS)
98
90
94
A
A
Toll Brothers
(TOL)
98
97
95
B
B
Ansys
(ANSS)
97
92
91
A
B+
Dropbox
(DBX)
97
93
82
A
B+
KLA
(KLAC)
97
95
93
A
A
MongoDB
(MDB)
97
82
95
B
B+
Microsoft
(MSFT)
97
90
94
A
A-
Impinj
(PI)
97
82
87
A
B-
PGT Innovations
(PGTI)
96
84
94
B
B+
Builders FirstSource
(BLDR)
95
88
98
B
B
KB Home
(KBH)
95
92
95
A
B-
Lam Research
(LRCX)
95
88
95
A
A
Stryker
(SYK)
95
83
89
A
B-
Veeco Instruments
(VECO)
95
80
90
B
A-
Data as of May 30, 2023 market close
Build Your Watchlist With Stock Ratings And Stock Lists
Running stock screens with the IBD Stock Screener or MarketSmith is an effective way to streamline your research.
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.
PulteGroup and HubSpot, for example, make both the IBD 50 and the IBD Big Cap 20.
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.
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.
But 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 Stocks
Using stocks 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.
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? That was the case for much of 2022.
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.
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The post Tech Roars Back As MSFT, ASML, AMAT, ORCL Lead Industry Charge appeared first on Investor’s Business Daily.
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The post Tech Roars Back As MSFT, ASML, AMAT, ORCL Lead Industry Charge appeared first on Energy News Beat.
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