The artificial intelligence boom has propelled cybersecurity leaders CrowdStrike (CRWD), Palo Alto Networks (PANW), Zscaler (ZS) and Gen Digital (GEN) onto this list of 30 top-rated stocks to buy and watch, as compiled by our stock screener.
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PANW stock, CRWD, ZS and GEN have already climbed beyond their buy zones. This week, Palo Alto Networks has bounced off its 10-week line, lifting the cybersecurity giant to an all-time high. CrowdStrike is poised to do the same.
Several homebuilders also form the foundation for this watchlist. Dream Finders Homes (DFH), D.R. Horton (DHI), Lennar (LEN), PulteGroup (PHM) and Toll Brothers (TOL) all make this screen.
With biotech booming, Regeneron Pharmaceuticals (REGN) and Vertex Pharmaceuticals (VRTX) also make the cut. Vertex has just cleared a three-weeks tight entry, while Regeneron is now extended from a breakout in a flat base last year.
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 from the 197 industries IBD tracks.
Investors can use IBD Stock Checkup to track group rankings and ratings for each of these stocks to watch as 2024 gets underway.
Each company on this stock screen is also outpacing at least 95% of all stocks in terms of key stock-picking factors.
Use This Stock Screener To Build Custom Filters And Watchlists
Education Stocks, Fashion Plays Also In Demand
Trendsetters like Lululemon Athletica (LULU), Burlington Stores (BURL) and Ross Stores (ROST) have also fashioned a spot on this screen. ROST and LULU stock are now extended beyond their latest buy zones. Lululemon is trying to stretch its gains with another bounce off its 10-week moving average.
BURL has soared to retake its 200-day moving average as its 50-day line climbs back above its 200-day benchmark, a sign of rebounding technical strength.
Education stock Stride (LRN) has learned how to impress Wall Street with a strong breakout. It remains extended but has pulled back to test support at its 10-week line.
Stock Screener Highlights Top-Rated Industry Leaders
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| CrowdStrike | CRWD | 99 | 99 | 98 | A | A+ |
| FEMSA | FMX | 99 | 82 | 90 | B | B |
| GigaCloud Technology | GCT | 99 | 99 | 99 | A | A |
| Globant | GLOB | 99 | 96 | 88 | A | B+ |
| Intuit | INTU | 99 | 98 | 90 | A | B- |
| Stride | LRN | 99 | 99 | 95 | B | B+ |
| Lululemon Athletica | LULU | 99 | 98 | 92 | A | B+ |
| Palo Alto Networks | PANW | 99 | 98 | 96 | A | A- |
| Zscaler | ZS | 99 | 99 | 97 | A | B+ |
| Burlington Stores | BURL | 98 | 81 | 89 | A | B+ |
| Dream Finders Homes | DFH | 98 | 96 | 98 | A | A+ |
| Gen Digital | GEN | 98 | 85 | 86 | A | A |
| LiveRamp | RAMP | 98 | 99 | 92 | B | B |
| Ross Stores | ROST | 98 | 86 | 85 | A | B |
| Neurocrine Biosciences | NBIX | 97 | 95 | 88 | A | B+ |
| Regeneron Pharmaceuticals | REGN | 97 | 84 | 81 | A | B |
| Trex | TREX | 97 | 90 | 94 | B | B+ |
| Vertex Pharmaceuticals | VRTX | 97 | 89 | 89 | A | B |
| D.R. Horton | DHI | 96 | 82 | 94 | B | B |
| Lennar | LEN | 96 | 82 | 93 | B | B+ |
| Owens Corning | OC | 96 | 94 | 91 | B | A- |
| Armstrong Worldwide Industries | AWI | 95 | 83 | 92 | A | A+ |
| Core & Main | CNM | 95 | 84 | 95 | B | A |
| East West Bancorp | EWBC | 95 | 86 | 91 | A | A |
| First Commonwealth Financial | FCF | 95 | 86 | 80 | A | B- |
| Griffon | GFF | 95 | 92 | 96 | B | A- |
| PGT Innovations | PGTI | 95 | 86 | 96 | B | A |
| PulteGroup | PHM | 95 | 95 | 96 | A | B+ |
| Toll Brothers | TOL | 95 | 87 | 95 | B | B+ |
| Webster Financial | WBS | 95 | 84 | 88 | A | A |
Data as of Jan. 11, 2024
PANW, CRWD Stock 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:
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 MarketSmith is an effective way to streamline your research to find top-rated stocks to watch like Microsoft.
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.
But 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 CRWD Stock 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.
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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