While a spout of market turbulence trimmed their numbers, Nvidia remains one of six stocks to watch with a 99 Composite Rating, the highest-possible score. Chipotle Mexican Grill joins that group after posting accelerating earnings growth.
Featured yesterday as the IBD Stock Of The Day, Chipotle is up over 10% for the week. After getting a haircut recently, Nvidia bounced back above its 50-day moving average. The artificial intelligence giant's 974 buy point in a consolidation pattern remains intact.
In total, six companies with a 99 Composite Rating make this stock screen, including Lifeway Foods, nVent Electric, Quanta Services and Vital Farms.
The 99 Composite Rating for all these companies puts them among the top 1% of all stocks in terms of key stock-picking factors.
Including Nvidia, Chipotle and these others with the highest-possible Composite Ratings, a total of 31 companies make this list of highly rated stocks to buy and watch, as compiled by our stock screener. Each stock featured earns a 95 or better Composite Rating, meaning they are outpacing at least 95% of all companies in terms of the most important stock-picking factors.
Keep in mind that as the market came under pressure in recent weeks, IBD's recommended market exposure level dropped steadily from 80%-100% to 40%-60% and all the way to down to the current 0%-20%.
In such an environment, investors need to stay grounded, armed with rules for when to sell stocks, as well with guidelines for how to buy stocks when better times return. Such rules help investors lock in gains, minimize damage from any pullbacks, and profit from emerging breakouts.
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Nvidia, Chipotle Remain Among Top Stocks In Top Groups
All the names on this stock screen hail from today's Top 20 industry groups — a factor worth noting since winning stocks tend to come from the top-ranked groups among the 197 industries that IBD tracks.
Investors can use IBD Stock Checkup to track group rankings and ratings for each of these stocks to watch. Each company on this stock screen is outpacing at least 95% of all stocks in terms of key stock-picking factors.
Use This Stock Screener To Build Custom Filters And Watchlists
Stock Screener Highlights Top-Rated Industry Leaders
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| Chipotle Mexican Grill | CMG | 99 | 98 | 95 | A | A- |
| Lifeway Foods | LWAY | 99 | 81 | 99 | B | A |
| Nvidia | NVDA | 99 | 99 | 98 | A | D- |
| nVent Electric | NVT | 99 | 93 | 94 | A | C- |
| Quanta Services | PWR | 99 | 97 | 92 | A | C+ |
| Vital Farms | VITL | 99 | 81 | 98 | B | A+ |
| Broadcom | AVGO | 98 | 87 | 94 | A | C- |
| Commvault Systems | CVLT | 98 | 95 | 92 | A | C |
| Elastic | ESTC | 98 | 81 | 91 | B | C+ |
| Installed Building Products | IBP | 98 | 95 | 96 | A | C |
| IES Holdings | IESC | 98 | 97 | 98 | B | A+ |
| Veeco Instruments | VECO | 98 | 97 | 91 | B | D+ |
| Wabtec | WAB | 98 | 91 | 93 | B | A- |
| Eagle Materials | EXP | 97 | 96 | 94 | A | C+ |
| Garmin | GRMN | 97 | 90 | 90 | A | C+ |
| Gates Industrial | GTES | 97 | 84 | 92 | B | A+ |
| Hubbell | HUBB | 97 | 95 | 91 | A | C+ |
| Martin Marietta | MLM | 97 | 97 | 92 | A | C |
| Block | SQ | 97 | 97 | 88 | B | C |
| James Hardie Industries | JHX | 96 | 94 | 86 | A | C |
| Knife River | KNF | 96 | 82 | 96 | B | C- |
| Mastercard | MA | 96 | 94 | 81 | A | D |
| Pure Storage | PSTG | 96 | 92 | 96 | A | C+ |
| Construction Partners | ROAD | 96 | 82 | 95 | B | D- |
| Sterling Infrastructure | STRL | 96 | 99 | 97 | A | D+ |
| Summit Materials | SUM | 96 | 88 | 85 | B | C- |
| TopBuild | BLD | 95 | 94 | 93 | A | C- |
| Griffon | GFF | 95 | 96 | 96 | B | C- |
| Owens Corning | OC | 95 | 98 | 90 | B | C+ |
| Photronics | PLAB | 95 | 96 | 88 | A | D+ |
| Qualcomm | QCOM | 95 | 86 | 89 | B | C- |
Data as of April 26, 2024
Nvidia, Chipotle Among Best Stocks To Watch
To make this screen of top stocks to watch in the top-ranked industries, each company must meet the following criteria:
- Industry group rank: from 1 to 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 daily average volume: 400,000 shares or more.
Ratings, of course, are just one part of the equation when evaluating a stock. Be sure to always check the stock chart to gauge when to buy, sell or hold.
Stock Screener: Build Your Watchlist With Stock Ratings And Stock Lists
Running stock screens with the IBD Stock Screener or MarketSurge is an effective way to streamline your research to find top-rated stocks to watch like Nvidia, Netflix and Cava.
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.
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.
Additionally, 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.
However, 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 Nvidia, Chipotle And Others
Using stock 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.
Meanwhile, 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?
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.
