Investors looking for stocks to buy and watch should check out the IBD Screen Of The Day, a column that focuses on a list of top ideas in the IBD Stock Screener. Today's IBD screen highlights the Stocks Funds Are Buying screen, featuring energy leaders Alpha Metallurgical and Flex LNG, along with IPO stock Driven Brands.
U.S. oil prices continued to retreat Wednesday, tacking toward a third-straight monthly decline — the commodity's longest drop since early 2020. West Texas Intermediate futures declined nearly 1% to trade just above $91 a barrel. Yet, the Energy sector remains No. 1 in IBD's stock tables.
Stocks To Buy And Watch: Alpha Metallurgical
Alpha Metallurgical, a Tennessee-based coal supplier, is close to completing a cup with handle that has a 187.08 buy point, according to IBD MarketSmith chart analysis. Shares rallied more than 2% midday Wednesday.
In the most recent quarter, the company earned $30.03 per share. In the year-ago period, the company lost $1.01 per share. Sales surged 238% to $1.33 billion year over year. Amid strong fundamentals and big price gains in recent weeks, the stock boasts a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup.
Meanwhile, the relative strength line is nearing its old highs. One risk is that the base is late stage.
Other Energy Stocks To Buy And Watch: Flex LNG
Among other energy stocks to buy and watch, liquefied natural gas (LNG) transporter Flex LNG is testing a cup with handle's 32.87 buy point. Shares pared losses to about 1% midday Wednesday. Bullishly, the stock's relative strength line hit a new high this week, confirming the energy stock as a market leader.
FLNG stock has a 98, of 99, for its IBD Composite Rating and RS Rating.
Outside of the IBD Screen Of The Day, IBD Leaderboard stock and LNG producer Cheniere Energy lost 0.5% Wednesday, but remains extended past a 150.10 buy point.
IPO Stock Leader: Driven Brands
IPO stock leader Driven Brands is adding another handle to a cup base in the wake of sputtering breakout above a 32.62 buy point. Shares are trying to find support around their 50-day line. The new handle shows an entry at 33.38.
Driven Brands is a member of the IBD IPO Leaders list, which utilizes special screening criteria to find up-and-coming stocks with strong fundamental and technical traits.
Charlotte, N.C.-based Driven Brands is the largest automotive services provider in North America. It performs all sorts of vehicle-related jobs, including painting, body work, engine repairs, oil changes and car washes.
