Investors searching for hot stocks to buy or watch should check out IBD Screen Of The Day, a column that focuses on a list of top ideas in the IBD Stock Screener.
All the lists in Stock Screener offer a look at stocks with bullish characteristics. Today we focus on hot stocks in Your Weekly Review — with a technical analysis angle.
Your Weekly Review features the cream of the crop — industry-leading stocks with Earnings Per Share and Relative Strength Ratings of 85 or higher. That places these leaders in the top 15% of all stocks based on those metrics.
These five stocks are all consumer plays that are basing or near buy points. They boast a highest possible EPS Rating of 99 and Composite Ratings of 95 or higher. The composite score gives investors a quick way to assess a stock's key growth traits.
Five Hot Stocks To Buy Or Watch
Boot Barn is working on a flat base with a 93.35 buy point, according to MarketSmith chart analysis. It's about 8% away from the entry. Shares have nearly doubled in price this year.
The Irvine, Calif.-based Western apparel and footwear seller sports a five-year compound earnings growth rate of 34%. Analysts expect Boot Barn's EPS to jump 115% for the current fiscal year ending in March, followed by a 5% slip in fiscal 2023.
Crocs is staging a strong rebound off its 10-week moving average, which sets up a chance to buy or add a smaller number of shares. Shares are a bit extended, though. The stock has soared nearly 150% this year as the company's resin-based clogs enjoy a resurgence in popularity.
The Colorado-based company leads the apparel and shoes manufacturing group, which ranks No. 19 out of the 197 industry groups tracked by IBD. Crocs owes much of its success to its cultlike following among Gen Z shoppers. It's partnered with pop culture favorites like Justin Bieber and Grammy-winning DJ and producer Diplo.
Next up, Deckers Outdoor, is very close to a 444.58 flat-base buy point. But the IBD Leaderboard stock sets up an early entry near 433 after clearing a trend line. Deckers, up 52% this year, is one of the hot stocks to watch as it continues to find support along its 10-week line.
The Uggs and Teva sandals marketer has posted double-digit or higher sales and profit growth the past four quarters. Analysts expect Deckers, with a five-year earnings growth rate of 33%, to grow annual profit by 17% in fiscal 2022 and 18% in 2023.
Lulu Reaches For New Highs
Like Crocs, Lululemon has set up an alternate entry after regaining its 10-week line. That marks its first test of the support line after breaking out past a 371.10 buy point of a cup-with-handle in July.
Last week's 10% surge was fueled by the activewear retailer's late Wednesday earnings and sales beat. Lululemon reported adjusted EPS of $1.65 on sales of $1.45 billion, respective year-over-year jumps of 123% and 61%. Analysts had forecast earnings of $1.19 on revenue of $1.33 billion.
RH is trading close to a 724.11 buy point of a cup-with-handle first cleared in early August. It's now about 3% below the entry. The upscale home furnishings retailer has a five-year earnings growth rate of 86%. Analysts forecast EPS to rise 41% for the current fiscal year, which ends in January.
Follow Nancy Gondo on Twitter at @IBD_NGondo
