Finding growth stocks that are outperforming the S&P 500 is not so difficult. On IBD MarketSmith, the RS Blue Dot Screen shows leaders with a relative strength line at a 52-week high, a bullish mark.
KB Home is in an ascending base after an impressive rally earlier this year. Shares are approaching a buy point of 55.37. Chart analysis also shows that the base was formed entirely above the 50-day moving average, which is a bullish sign of support. The stock has rallied 72% so far this year. So, does it have room for further upside?
The early stage base is a plus point. KB Home builds houses in California, Arizona, Texas and other states. Its in the homebuilding group, which moved up from a high rank of No. 8 to an even higher fifth place among IBD's 197 industry groups in the most recent week.
Among other building stocks, new issue Knife River broke out of a cup base Tuesday. It closed near the top of a buy range from a 49.19 buy point. The company supplies asphalt mix, concrete and other materials for paving and construction.
Growth Stocks VRTV, PAY
Vertiv on Monday gapped above a cup base with a buy point of 161.84. The relative strength line at a new high also. However, the late-stage base calls for some caution. Vertiv's sales and earnings also declined in the two most recent quarters.
But the packaging and printing products maker has a gain of 38% so far this year and has easily outperformed the S&P 500's gain of 17%.
Recent new issue in the payments and credit cards group, Paymentus Holdings has gapped up above a flat base after the company reported earnings. The stock is thinly traded, however.
Amid growth stocks in health care with relative strength lines at new highs, Eli Lilly gapped up after a strong quarter. Novo Nordisk is also soaring after its weight loss drug was found to reduce cardiovascular events in overweight patients.
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