After getting tarnished during a volatile summer, Nvidia (NVDA) has rebounded to lead this cadre of 19 “perfect” stocks as it takes aim at a fresh breakout to an all-time high. Nvidia stock shares the highest-possible 99 Composite Rating with fellow fabless semiconductor firms Broadcom (AVGO) and Arm Holdings (ARM), as well as fellow artificial intelligence stock Arista Networks (ANET).
Ameriprise Financial (AMP), which led this month’s list of new buys by the best mutual funds, also earns a spot on this stock screen.
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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, Nvidia stock, Broadcom and Arm Holdings all hail from the fabless semiconductor group, which ranks a lofty No. 9 among the 197 groups IBD tracks, according to MarketSurge. Arista Networks is in the No. 12-ranked networking group.
Stock Screener Highlights Top-Rated Industry Leaders
| Company | Symbol | Comp Rating | Ind Group Rank | EPS Rating | RS Rating | SMR Rating |
|---|---|---|---|---|---|---|
| Argan | AGX | 99 | 7 | 96 | 98 | A |
| Ameriprise Financial | AMP | 99 | 18 | 93 | 90 | A |
| Arista Networks | ANET | 99 | 12 | 98 | 95 | A |
| Arm Holdings | ARM | 99 | 9 | 99 | 97 | A |
| Broadcom | AVGO | 99 | 9 | 93 | 94 | A |
| CSW Industrials | CSWI | 99 | 19 | 97 | 97 | A |
| Clearwater Analytics | CWAN | 99 | 6 | 99 | 93 | A |
| Dycom Industries | DY | 99 | 2 | 94 | 95 | B |
| Comfort Systems | FIX | 99 | 19 | 99 | 97 | A |
| First Bank (NJ) | FRBA | 99 | 17 | 93 | 80 | A |
| Houlihan Lokey | HLI | 99 | 18 | 89 | 91 | A |
| Interactive Brokers | IBKR | 99 | 18 | 96 | 94 | A |
| Jefferies Financial | JEF | 99 | 18 | 85 | 95 | B |
| Nvidia | NVDA | 99 | 9 | 99 | 97 | A |
| Sezzle | SEZL | 99 | 10 | 83 | 99 | A |
| Stifel Financial | SF | 99 | 18 | 85 | 92 | B |
| Sterling Infrastructure | STRL | 99 | 7 | 99 | 97 | A |
| Tradeweb Markets | TW | 99 | 10 | 98 | 89 | A |
| Vertex | VERX | 99 | 6 | 95 | 93 | A |
Data as of Oct. 18
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.
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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