Artificial intelligence juggernaut Nvidia (NVDA) has endured a rash of selling which has dragged it below its 50-day moving average. But despite those hiccups, Nvidia stock still commands the highest-possible 99 Composite Rating and analysts remains bullish on the AI chip stock.
Fellow semiconductor industry leader Arm Holdings (ARM) joins Nvidia among 18 “perfect” stocks highlighted by this stock screener. Industry peer Broadcom (AVGO) fell off this list as its Composite Rating dipped to a still-strong 98.
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Is Bigger Really Better? Finding The Winners In Every Industry.
Flexing its muscles in the AI and other markets, Arm Holdings was profiled in The New America column on July 19. But like Nvidia and Broadcom, ARM stock has failed to hold support at its 50-day line.
As Nvidia, Arm and other leaders in this bull market begin to show cracks, investors should continue to look for any signs of sector rotation. Note that after Nvidia reigned supreme on last month’s list of new buys by the best mutual funds, it went AWOL in July. ARM stock, on the other hand, earned a spot on this screen both months.
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Mining Stocks Earn Golden Ratings
Reflecting emerging sector rotation, four mining stocks have drilled their way onto this list of top-rated stocks. Miners Agnico-Eagle Mines (AEM), Eldorado Gold (EGO), IamGold (IAG) and Harmony Gold Mining (HMY) all make this screen.
Agnico-Eagle Mines is in buy range, rebounding to a 1.5% gain on Monday. Eldorado Gold has dipped below its buy point after a recent breakout but rose over 3% Monday. It now trades just 1% shy of its buy point. Meanwhile, Harmony Gold and IamGold need to refurbish their current bases.
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Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
Nvidia, Arm Still Among Top Stocks In Top Groups
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.
For example, the fabless semiconductor group — home to Nvidia, Broadcom and Arm — ranks No. 10, according to MarketSurge.
The Mininng-Gold/Silver/Gems group ranks No. 8.
Stock Screener Highlights Top-Rated Industry Leaders
| Company | Symbol | Comp Rating | Ind Group Rank | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Agnico-Eagle Mines | AEM | 99 | 8 | 97 | 89 | B | B |
| Argan | AGX | 99 | 9 | 89 | 96 | B | A- |
| Arm Holdings | ARM | 99 | 10 | 99 | 98 | A | C- |
| Eldorado Gold | EGO | 99 | 8 | 86 | 88 | B | B |
| Granite Construction | GVA | 99 | 9 | 92 | 95 | B | A- |
| Halozyme Therapeutics | HALO | 99 | 16 | 98 | 95 | A | A |
| Harmony Gold Mining | HMY | 99 | 8 | 99 | 93 | A | D- |
| IamGold | IAG | 99 | 8 | 81 | 90 | B | B- |
| Jefferies Financial | JEF | 99 | 19 | 84 | 94 | B | A- |
| Live Oak Bancshares | LOB | 99 | 18 | 98 | 90 | B | A |
| MetroCity Bankshares | MCBS | 99 | 18 | 81 | 92 | A | A |
| Nvidia | NVDA | 99 | 10 | 99 | 98 | A | D- |
| Piper Sandler | PIPR | 99 | 19 | 89 | 96 | B | A |
| SIGA Technologies | SIGA | 99 | 16 | 81 | 97 | A | A |
| Texas Pacific Land | TPL | 99 | 1 | 91 | 94 | A | B+ |
| Universal Health | UHS | 99 | 14 | 91 | 93 | B | B+ |
| United Therapeutics | UTHR | 99 | 16 | 93 | 94 | A | A |
| Vertex | VERX | 99 | 7 | 97 | 95 | A | A- |
Data as of July 29, 2024
Nvidia, Miners 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:
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 like Nvidia, Broadcom 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 IBD Methodolody, 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, Arm 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.
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