Finding top stocks with winning fundamentals and constructive charts out of the thousands available can seem daunting. This screen from IBD MarketSmith identified 12 stocks with the highest IBD Earnings Per Share and Relative Strength Ratings.
The screen found top stocks with 97 to 99 RS and EPS Ratings. The proprietary EPS Rating combines a company's two most recent quarters of EPS growth with its three-year to five-year annual growth rates. A reading of 80 means the company outperformed 80% of publicly traded companies. IBD looks for an 80 or higher EPS rating to find winning growth stocks.
The RS Rating measures a stock's price performance over the last 12 months versus all stocks in the IBD database. A measure of 80 means the stock outperformed 80% of stocks that IBD tracks.
All stocks in the screen are priced at 12 or higher to avoid lower-quality names. Several are forming bases.
IBD 50 Top Stocks Outshine The Rest
IBD 50 stock Goosehead Insurance is in an undefined base with a 79.40 buy point, according to MarketSmith pattern recognition.
Goosehead reported higher-than-expected third-quarter earnings and sales on Oct. 25. Quarterly profit grew an impressive 92% on 23% sales growth. Shares are testing the 50-day moving average. Analysts expected 140% profit growth this year and 31% next year, according to MarketSmith data.
Chinese discount retailer Miniso is in a cup base with a 29.92 buy point. Shares have trended upward since the company reported a beat on its June-quarter EPS and revenue estimates on Aug. 22. Quarterly earnings grew a hefty 131% on 30% sales growth.
Shares pulled back starting Sept. 15, despite that the company announced a $200 million share buyback. MNSO stock, which is also in the IBD 50, has traded mainly above its 50-day line as it forms the base.
The retailer operates more than 5,500 locations worldwide. Miniso is scheduled to report its September-quarter results Nov. 21.
IBD 50 Top stock CrowdStrike bounced off its 10-week moving average last week, where it found support. The cybersecurity stock is extended from the buy range of 172.69 up to 189.96 from last week's successful test of the 10-week line.
Shares have been on a choppy uptrend since CrowdStrike reported higher-than-expected July-quarter profit and sales on Aug. 30. Quarterly earnings growth accelerated to 106% from 57% and 84% in the prior two quarters. Quarterly sales growth slowed from 48% to 42% and 37%. CRWD climbed to a 52-week high on Tuesday.
| Ticker | EPS Rating | RS Rating | |
|---|---|---|---|
| Goosehead Insurance | GSHD | 99 | 97 |
| Miniso | MNSO | 99 | 99 |
| CrowdStrike | CRWD | 99 | 97 |
| Hawkins | HWKN | 98 | 97 |
| Limbach | LMB | 99 | 99 |
| Arista Networks | ANET | 97 | 97 |
| Core Molding Technologies | CMT | 99 | 98 |
| Dorian LPG | LPG | 99 | 98 |
| Stride | LRN | 99 | 97 |
| Novo Nordisk | NVO | 97 | 97 |
| Qualys | QLYS | 99 | 97 |
| Sterling Infrastructure | STRL | 98 | 99 |
More Top Stocks Setting Up In Bases
Hawkins is in an irregular base with a 63.21 buy point. Aggressive traders could use an early entry at 61.36.
The specialty chemicals maker reported its September-quarter results on Nov. 1. Earnings exceeded estimates but sales missed. Shares plunged 5% the day following the earnings release.
Thinly traded Hawkins rebounded more than 11% on Friday, after BWS Financial raised its price target to 74 from 62 and maintained its buy rating. Hawkins stock retook its 50-day line in heavier-than-average daily volume on the jump.
Limbach is in a cup base, with about half of the base below its 50-day line — a negative trait. Shares bumped up to the 50-day line on Tuesday ahead of its third-quarter results on Wednesday after the market close. The stock gained around 192% this year.
The stock trades at a thin average daily volume of 200,000 shares. Its quarterly earnings and sales growth has improved after some erratic quarters. Full-year 2023 EPS is projected to grow 140% and 11% in 2024. The company's subsidiaries make building automation, maintenance and other systems.
Sterling Plummets After Sales Miss
Sterling Infrastructure made the list but its IBD Rating are bound to fall after the stock sold off Tuesday.
Shares gapped down more than 14% in heavy trading after the e-infrastructure company reported its third-quarter earnings. Profit came in higher than analysts' expectations but sales missed. Sterling raised its full-year 2023 EPS range and the low end of its full-year revenue guidance, but that wasn't enough to excite investors.
The stock plunged deep below its 50-day line and flashed a sell signal.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
