Go to the Research tab at Investors.com and click on IBD Stock Screener. Near the top left side of the page, under IBD Stock Lists, you’ll find 12 lists. All the lists in Stock Screener offer a look at stocks with bullish characteristics.
Today we focus on CAN SLIM Select — with a technical analysis angle. Stocks on the CAN SLIM Select list show traits including strong earnings and sales growth, positive sponsorship and industry group relative strength. The list is generated by NorthCoast Asset Management.
Here are four market-leading hot stocks making the grade. All four hold Composite Ratings of 80 or higher, an A or B SMR Rating (sales + profit margins + return on equity) and a positive Accumulation/Distribution Rating. They’re also near buy points.
Four Hot Stocks To Watch
Rent-A-Center (RCII) is working on a nine-week cup base with a 64.89 buy point, according to MarketSmith chart analysis. The stock has been hitting resistance at its 10-week moving average, so a solid move above the line would be a bullish sign. It’s about 11% away from the entry.
Plano, Texas-based Rent-A-Center has posted 33% or better profit growth the past four quarters. Analysts expect earnings to jump 70% in the current quarter, followed by 39% and 46% gains in Q3 and Q4.
Idexx Laboratories (IDXX) is about 5% away from a 561.62 buy point of a cup with handle. The base is second stage, so the stock could still have room to run. Stocks tend to make their biggest advances out of such early stage bases. The relative strength line, which compares a stock’s performance to the S&P 500, is lagging. A move to new highs at or ahead of a potential breakout would be a welcome sign.
The veterinarian diagnostics company’s 98 Earnings Per Share Rating leads the 65-stock medical systems and equipment group, which includes Intuitive Surgical (ISRG). Profit growth stepped up to a 73% year-over-year increase in Q1 from 43% in Q4 of 2020.
Dow Jones Stock Near Breakout
JPMorgan Chase (JPM) is trading just below a 161.79 buy point of an early-stage flat base. The Dow Jones stock briefly climbed past the entry Monday, before closing back below. If JPMorgan stock goes on to stage a breakout, the buy range would go up to 169.88.
The bank’s profit growth has accelerated the past two quarters from 9% to 19% to 324%, after two quarters of declines. Analysts expect a 120% jump in the current quarter.
Though the biotech delivered mixed Q1 results late May 4, it also said it’s on track to buy GW Pharmaceuticals (GWPH) this month. GW makes seizure treatment Epidiolex, the first and only drug derived directly from the cannabis plant to gain FDA approval.
The Ireland-based drugmaker’s earnings fell 19% last year. Wall Street analysts expect profit growth to resume at 25% this year and 16% the next.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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