Nothing stays the same in the stock market. So how do you keep a dozen or more top stocks on your radar?
Three of the best screens on IBD MarketSmith make it easy for you. Futu Holdings (FUTU), Palo Alto Networks (PANW), and Axcelis Technologies (ACLS) are top stocks on IBD screens that are in buy ranges.
The Fed’s tightening cycle may not be over, but the stock market has gained about 20% in 2023 so far, going by gains in the S&P 500. High growth names in technology, airlines and homebuilding have rallied, among others. But fears of recession and hopes of a soft landing have investors searching for direction.
But focusing in the right sectors and making smart picks can keep you ahead. FactSet’s consensus is still optimistic for the S&P 500 and sees a net profit margin of 12.3% for 2023.
Three screens on MarketSmith show market leaders with industry outperformance. Some of these top stocks are actionable now.
Top Stocks To Buy Now
There are a few essential characteristics to look for in a stock. Fundamental growth comes first.
Even if some of these companies are not profitable, their stocks can grow if sales growth is exceptional due to a high-growth market or innovative product. When growth accelerates, we have the makings of a real winner.
But always watch for volume. High volume can be a positive or negative sign depending on whether the stock is moving up or down. High volume as a stock climbs means that big institutions are picking up shares.
This can drive the stock price up for an extended time. It also pumps liquidity into the stock, which is always a plus from an investment point of view.
Futu Among The Fastest Growing Companies
Futu Holdings (FUTU) is in MarketSmith’s Fastest Growing Companies screen.
Sales and earnings growth are on a fast track, which is why it appears on the screen. Sales grew from 10% a year ago to 52% in the most recent quarter. But earnings growth has been even more impressive. Earnings grew from 59 cents a year ago to almost double that in the most recent quarter.
Futu has a perfect Composite Rating and EPS Rating of 99, with a Relative Strength Rating of 93. In May, Credit Suisse upgraded the stock to outperform from neutral with a price target of 49 after Q1 results came out.
The stock is above that price target. It is also extended from a cup’s entry of 54.10. But there are other entries investors could consider. A horizontal trendline offers a 56.56 entry. December’s peak of 72.20 could be a higher entry as well.
Futu also happens to be a top rated stock because of the interest it’s attracting from big funds. Its Accumulation/Distribution Rating is a top notch A+ and is also on the IBD 50.
Top Rated Stock Palo Alto Earnings Expand
Palo Alto Networks (PANW) is in MarketSmith’s Top Rated Stocks list. Sales have held steady but earnings have vaulted from 2% growth in the October 2021 quarter to 83% in the quarter that ended in April this year. PANW is also an IBD Sector Leader.
The stock is extended from an earlier 213.63 entry but it could soon form a flat base. Shares are also finding support at the 21-day exponential moving average.
Accelerating Leader ACLS Is Among Top Stocks
Among the names in the Accelerating Leaders screen, Axcelis Technologies (ACLS) has a Composite Rating of 98.
ACLS has cleared a level of resistance around 186 that is just above its 21 day exponential moving average. But the stock is extended from its 10-week moving average.
Earnings are due Wednesday for this growth stock, which is also in the IBD 50.
