Knowing where to look to find winning growth stocks can be challenging. And chasing trendy names or new issues can be extra risky as they can be volatile and illiquid. Others don't have fundamentals needed to push the stock higher. Enter the IBD Big Cap 20. This screen finds mature, top-rated large-cap growth stocks without the big price swings sometimes seen in smaller names.
It follows Investor's Business Daily Methodology which seeks growth stocks with rising earnings and sales in charts showing relative price strength and base formation.
The IBD Big Cap 20 screen can be found on investors.com under the Stock Lists tab. The screen is updated daily and every week, one name is highlighted in the Inside The Big Cap 20 column in IBD Weekly.
Sorting The Big Cap 20
Each of the seven columns shown can be sorted by clicking on the header. The Volume % Change and Price % Change columns may be particularly helpful when seeking out rising stocks in increased volume. Stocks climbing in rising volume can be a sign that institutions are building positions in a name. Also shown are the most recent quarter's Earnings-Per-Share % Change and Sales % Change.
The criteria used to generate the list of 20 large-cap U.S. stocks consists of profit growth, IBD Composite Rating and relative price strength over the last 12 months. Stocks must have a minimum market capitalization of $15 billion and trade more than 300,000 shares-per-day to ensure liquidity.
The list is currently heavily weighted with gold names. These gold stocks are all found in the IBD Mining-Gold/Silver/Gems group, which holds the No. 1 spot out of the 197 industry groups that Investor's Business Daily tracks. IBD looks for market leaders ranked No. 1 or 2 in an industry group that sits in the top 40.
The Big Cap 20 finds leading names for your watchlist so you can be ready when the market looks safe to get back in.
T-Mobile Stock Makes The IBD Big Cap 20
T-Mobile US stock has a market capitalization of around $300 billion. Its 21-day Average True Range of 2.9% indicates lower daily volatility. IBD looks for stocks with an ATR of 5% or less, although in the current market environment, 3% or less is even safer.
Moreover, T-Mobile has a best-possible 99 Composite Rating, a 97 Earnings Per Share Rating and a 96 Relative Strength Rating.
T-Mobile stock recently climbed above its 50-day moving average as it sculpts a flat base (Point 1) with a 276.49 buy point. The formation is not ideal due to the steep sell-off on April 4 in heavy volume (Point 2) but it still qualifies as a flat base. Investors should be cautious of breakouts and new buys during the current market correction and should follow risk management rules, including cutting losses at 7%.
Further, its relative strength line reached a 52-week high Wednesday, as shown by the blue dot on the daily and weekly MarketSurge chart.
The wireless carrier reports its first-quarter earnings on April 24.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
