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Investors Business Daily
Investors Business Daily
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MATTHEW GALGANI

Miners, Insurers — And Netflix — Lead 33 'Perfect' Stocks In Damaged Market

Rattled by President Donald Trump's tariffs and his simmering feud with Federal Reserve chief Jerome Powell, the market indexes remain mired below their 50-day and 200-day moving averages. Such technical weakness makes risk management a top priority, reminding investors of rules for both how to buy stocks and when to sell stocks.

But as once highflying tech stocks like Nvidia have showcased the eight "secrets" of selling, this screen showcases 33 stocks earning the highest-possible 99 Composite Rating. Dominated by precious metals and gold stocks, as well as insurance stocks, Netflix has also streamed onto the list. Defense stocks like Heico and Loar have also secured a spot on this screen.

Note, however, that a stellar Composite Rating is just one reason these companies make the list. Netflix, Loar and the others also all hail from highly ranked industry groups.

Risk Management: How Invested Should You Be Right Now?

Netflix Among Top Stocks In Top Groups

In addition to a 99 Composite Rating, all the names on this stock screen hail from the top-ranked industry groups — a factor worth noting because winning stocks tend to come from the top-ranked groups among the 197 industries that IBD tracks. This screen highlights the Top 20 industries.

Netflix stock — Tuesday's IBD Stock Of The Day — hails from the Leisure-Movies & Related industry, which ranks No. 9. On Tuesday, the streaming giant broke out, clearing a 998.70 buy point in a double bottom with its relative strength line notching a 52-week high. It's a common pattern in volatile markets.

The Mining-Gold/Silver/Gems group, which includes gold stocks like Barrick Gold and Eldorado Gold, comes in at No. 1.

Insurance stocks are categorized in different industries within the broad insurance sector. Bowhead Specialty, for example, comes from the Insurance-Diversified industry, which ranks No. 8 out of 197 groups. Goosehead Insurance is part of No. 10-ranked Insurance-Property/Casualty/Title group.

Refine Your Stock Picks With This Stock Screener. Here's How.

Stock Screener Highlights Top-Rated Industry Leaders

Company Symbol Comp Rating Ind Group Rank EPS Rating RS Rating SMR Rating A/D Rating
Alamos Gold AGI 99 1 96 98 A B+
Avino Silver & Gold Mines ASM 99 1 80 99 B A
Adtalem Global Education ATGE 99 6 97 96 A C
AngloGold Ashanti AU 99 1 80 98 A A
Bowhead Specialty BOW 99 8 80 96 A B-
Caledonia Mining CMCL 99 1 80 95 B A
Doximity DOCS 99 20 99 97 A B-
DRDGold DRD 99 1 93 98 A A-
Eldorado Gold EGO 99 1 95 95 A B+
Elbit Systems ESLT 99 4 88 98 B A-
Espey Manufacturing & Electronics ESP 99 4 90 92 A B-
Fortuna Mining FSM 99 1 94 96 A A
Gold Fields GFI 99 1 97 97 A A-
Barrick Gold GOLD 99 1 86 93 A B
Goosehead Insurance GSHD 99 10 96 95 A D+
Heico HEI 99 4 95 83 A B-
Hecla Mining HL 99 1 80 84 B B-
Harmony Gold Mining HMY 99 1 97 98 A A+
ICICI Bank ADR IBN 99 7 95 93 A A-
Idaho Strategic Resources IDR 99 1 80 97 A A
Kinross Gold KGC 99 1 84 98 A A-
Loar LOAR 99 4 80 94 B B
Stride LRN 99 6 99 98 A C+
M-tron Industries MPTI 99 4 99 95 A B+
Newmont NEM 99 1 88 95 A A
Netflix NFLX 99 9 98 97 A A-
New Gold NGD 99 1 80 98 A B+
Palomar PLMR 99 8 97 97 A B+
Sprouts Farmers Market SFM 99 13 97 98 A B-
Skyward Specialty Insurance SKWD 99 10 96 95 A B
Silvercorp Metals SVM 99 1 85 88 A A
Triple Flag Prec Metals TFPM 99 1 98 97 A A-
Wheaton Precious Metals WPM 99 1 90 97 A A-
Data as of April 22

Hunting For The 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:

However, 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.

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 IBD Methodology, 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 Stocks

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 X (formerly Twitter) at @IBD_MGalgani.

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