July 7, 2024

Top 10 Highly Rated Stocks to Watch: Nvidia, Meta, and More

4 min read

The stock market continues to show impressive growth, with many top-rated stocks powering higher. In this article, we will explore the top 10 highly rated stocks to watch, including Nvidia, Meta, and more. These stocks have earned a perfect 99 Composite Rating, the highest possible score, and hail from the top 20 industry groups.

First, let’s take a look at Nvidia (NVDA), which recently delivered another beat-and-raise quarter. With a Composite Rating of 99, Nvidia is a perfect stock to watch. The company’s EPS Rating, RS Rating, SMR Rating, and A/D Rating are all above 80, making it a strong contender for investors looking to add growth stocks to their portfolios.

Another top-rated stock to watch is Meta Platforms (META), which has a Composite Rating of 99. Meta Platforms, the parent company of Facebook, has shown impressive growth and is outpacing at least 95% of all stocks in terms of key stock-picking factors. The company’s EPS Rating, RS Rating, SMR Rating, and A/D Rating are all above 80, making it a solid addition to any watchlist.

Netflix (NFLX) is another top-rated stock to watch, with a Composite Rating of 99. Netflix has been a leader in the streaming industry and has shown consistent growth. The company’s EPS Rating, RS Rating, SMR Rating, and A/D Rating are all above 80, making it a strong contender for investors looking for growth stocks.

Arm Holdings (ARM) is another top-rated stock to watch, with a Composite Rating of 99. Arm Holdings is a leading semiconductor company and has shown impressive growth. The company’s EPS Rating, RS Rating, SMR Rating, and A/D Rating are all above 80, making it a solid addition to any watchlist.

ASML Holding (ASML) is another top-rated stock to watch, with a Composite Rating of 99. ASML is a leading supplier of photolithography equipment for the semiconductor industry and has shown consistent growth. The company’s EPS Rating, RS Rating, SMR Rating, and A/D Rating are all above 80, making it a strong contender for investors looking for growth stocks.

Super Micro Computer (SMCI) is another top-rated stock to watch, with a Composite Rating of 99. Super Micro Computer is a leading provider of server technology and has shown impressive growth. The company’s EPS Rating, RS Rating, SMR Rating, and A/D Rating are all above 80, making it a solid addition to any watchlist.

Netflix, Nvidia, Meta, Arm Holdings, ASML Holding, and Super Micro Computer are just a few of the top-rated stocks to watch. A total of 35 companies make this list of highly rated stocks to buy and watch, all earning a 95 or better Composite Rating.

It’s important to note that while these stocks have impressive ratings, they may be extended beyond their buy zones and have climbed well above their 50-day moving averages. Once a stock moves over 5% above the 50-day moving average, the likelihood of a pullback or pause increases. Therefore, it’s crucial for investors to stay grounded and have rules for when to sell stocks to lock in gains and minimize losses.

All the names on this stock screen hail from today’s Top 20 industry groups, which is worth noting since winning stocks tend to come from the top-ranked groups from the 197 industries that IBD tracks. Investors can use IBD Stock Checkup to track group rankings and ratings for each of these stocks to watch.

To make this screen of top stocks to watch in the top-ranked industries, each company must meet the following criteria: industry group rank from 1 to 20, Composite Rating of 95 or higher, EPS Rating of 80 or higher, RS Rating of 80 or higher, SMR Rating of A or B, and Accumulation/Distribution Rating of A or B.

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. You can also zero in on the best stocks to watch using IBD stocks lists based on a wide range of preset filters. Once you’ve put together potential stock picks for your watchlist, you’ll want to evaluate your ideas with IBD Stock Checkup.

Using stock lists and stock ratings helps you understand what to buy, but it’s also crucial to check the stock chart to gauge when to buy, sell, or hold. The stock chart provides the most unbiased diagnosis of a stock’s health.

In conclusion, the top 10 highly rated stocks to watch, including Nvidia, Meta, Netflix, Arm Holdings, ASML Holding, and Super Micro Computer, are all outpacing at least 95% of all stocks in terms of key stock-picking factors and hail from today’s Top 20 industry groups. These stocks are strong contenders for investors looking for growth stocks and should be closely monitored. Remember, it’s important to stay grounded and have rules for when to sell stocks to lock in gains and minimize losses.

Follow Matthew Galgani on Twitter at @IBD_MGalgani for more stock market insights and analysis.

Disclaimer: The information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.

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