Led by Axon Enterprise, Duolingo and IPO Leader Credo Technology, 21 names make this list of "perfect" stocks sporting the highest-possible 99 Composite Rating. This stock screener also highlights cryptocurrency play Coinbase and artificial intelligence stock Intapp.
And a stellar Composite Rating is just one reason the stocks make this list.
Financial Names Also Lead Top Stocks In Top Groups
In addition to a 99 Composite Rating, 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 stocks in the Top 20 industries.
Coinbase, which dived on earnings but is holding near a 283.48 buy point, hails from the Computer Software-Financial group, which ranks No. 5.
Amalgamated Financial is in the No. 11-ranked Banks-Northeast group. Jefferies Financial and LPL Financial are in the Finance-Investment Bankers/Brokers group, which ranks No. 16.
Outside of finance, Taser maker Axon Enterprise has secured a spot on this list. Its Security/Safety group ranks No. 15. Axon stock also earns a spot on IBD Sector Leaders, our most stringent screen.
Credo, Duolingo Among Six Top-Rated IPOs
In addition to Duolingo and Coinbase, fellow Class of 2021 IPO members Clearwater Analytics and Intapp also earn a spot on this screen. Duolingo and Clearwater have also landed on the IBD 50. Intapp is showcased on Stock Spotlight.
Duolingo stock, Intapp and Clearwater Analytics all trade around their all-time highs. Each of these top IPOs show market leadership with strong relative strength lines.
Credo Technology, which provides serializer-deserializer technology for high-speed network connectivity, went public in 2022. Credo has secured a spot on the IPO Leaders screen. Shares of CRDO reversed lower Thursday but remain above the 21-day exponential moving average. The company reports earnings on Nov. 28.
Youngest among the IPOs featured on this screen, digital payments specialist Sezzle made its market debut in 2023. Not to be outdone by its fellow IPO stocks on this list, Sezzle has come off the record high it notched earlier this month.
Refine Your Stock Picks With This Stock Screener. Here's How.
Stock Screener Highlights Top-Rated Industry Leaders
| Company | Symbol | Comp Rating | Ind Group Rank | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Argan | AGX | 99 | 10 | 97 | 99 | B | A |
| Amalgamated Financial | AMAL | 99 | 11 | 96 | 92 | A | B |
| Axon Enterprise | AXON | 99 | 15 | 97 | 98 | A | A |
| BGC Group | BGC | 99 | 16 | 92 | 87 | A | B+ |
| Bank7 | BSVN | 99 | 18 | 97 | 94 | A | A |
| Coinbase Global | COIN | 99 | 5 | 81 | 97 | B | A |
| Credo Technology | CRDO | 99 | 9 | 81 | 98 | B | A- |
| Commvault Systems | CVLT | 99 | 6 | 94 | 95 | A | B |
| Clearwater Analytics | CWAN | 99 | 5 | 99 | 91 | A | C+ |
| Duolingo | DUOL | 99 | 4 | 81 | 96 | B | A- |
| Great Lakes Dredge | GLDD | 99 | 10 | 81 | 91 | B | B+ |
| Intapp | INTA | 99 | 5 | 81 | 93 | B | A- |
| Jefferies Financial | JEF | 99 | 16 | 85 | 95 | B | A- |
| LPL Financial Holdings | LPLA | 99 | 16 | 85 | 88 | A | B+ |
| Marex | MRX | 99 | 8 | 99 | 89 | A | A+ |
| Perella Weinberg Partners | PWP | 99 | 16 | 86 | 96 | A | B+ |
| Quanta Services | PWR | 99 | 10 | 96 | 90 | A | C+ |
| Sezzle | SEZL | 99 | 8 | 83 | 99 | A | A- |
| Stifel Financial | SF | 99 | 16 | 92 | 93 | B | A- |
| Third Coast Bancshares | TCBX | 99 | 18 | 98 | 96 | A | A |
| Vertex | VERX | 99 | 5 | 93 | 95 | A | A |
Data as of Nov. 14
Digging For The 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:
- Industry group rank: from 1 to 20 (on IBD's 197 industries list).
- Composite Rating: 99.
- EPS Rating: 80 or higher.
- Relative Strength Rating: 80 or higher.
- SMR Rating: A or B.
- Current share price: $12 or more.
- 50-day daily average volume: 400,000 shares or more.
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.
