Aided by continued demand for artificial intelligence stocks across a wide range of industries, Palantir Technologies, Samsara, Shopify, Atlassian, AppLovin and Netflix lead this screen of 26 "perfect" stocks earning the highest-possible 99 Composite Rating.
Cybersecurity firms CrowdStrike and Fortinet, as well as top online brokers Robinhood Markets and Interactive Brokers, join them on this stock screen.
For Palantir, AppLovin, Samsara and the others, the stellar 99 Composite Rating means each stock is outpacing 99% of all stocks in terms of key stock-picking factors. But that score is just one reason the companies make this list.
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Palantir, Netflix Among 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 the Top 20 industries.
Palantir stock, Samsara and Shopify, for example, hail from the Enterprise Software industry, which ranks No. 15. Tuya, a China-based 2021 IPO, joins them.
Home to CrowdStrike and Fortinet, the cybersecurity software group ranks No. 18. Netflix stock, which trades right around its record high, is categorized in the 10th-ranked Leisure-Movies & Related industry.
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Stock Screener Highlights Top-Rated Industry Leaders
Company | Symbol | Comp Rating | Ind Group Rank | EPS Rating | RS Rating | SMR Rating | A/D Rating | Comp Rating |
---|---|---|---|---|---|---|---|---|
Alaska Air | ALK | 99 | 1 | 98 | 96 | B | B | 99 |
AppLovin | APP | 99 | 9 | 83 | 99 | A | A | 99 |
Archrock | AROC | 99 | 20 | 99 | 91 | A | B+ | 99 |
Adtalem Global Education | ATGE | 99 | 13 | 98 | 94 | A | B | 99 |
Credo Tech | CRDO | 99 | 4 | 81 | 98 | B | A- | 99 |
CrowdStrike | CRWD | 99 | 18 | 97 | 93 | A | B | 99 |
Doximity | DOCS | 99 | 6 | 99 | 98 | A | B+ | 99 |
Descartes Systems | DSGX | 99 | 9 | 98 | 81 | A | D+ | 99 |
Duolingo | DUOL | 99 | 2 | 81 | 97 | B | A+ | 99 |
Fox Corp. | FOXA | 99 | 16 | 96 | 94 | B | A+ | 99 |
Fortinet | FTNT | 99 | 18 | 99 | 93 | A | A- | 99 |
Futu | FUTU | 99 | 17 | 93 | 96 | A | A+ | 99 |
Chart Industries | GTLS | 99 | 20 | 99 | 91 | A | D- | 99 |
Interactive Brokers | IBKR | 99 | 17 | 97 | 96 | A | A+ | 99 |
Samsara | IOT | 99 | 15 | 80 | 93 | B | A- | 99 |
LPL Financial | LPLA | 99 | 17 | 93 | 92 | A | B+ | 99 |
Liquidity Services | LQDT | 99 | 11 | 97 | 96 | A | A | 99 |
Stride | LRN | 99 | 13 | 99 | 97 | A | A | 99 |
Netflix | NFLX | 99 | 10 | 98 | 94 | A | A | 99 |
Natural Gas Services | NGS | 99 | 20 | 81 | 89 | B | B- | 99 |
Olo | OLO | 99 | 11 | 92 | 88 | B | B+ | 99 |
Palantir Technologies | PLTR | 99 | 15 | 98 | 99 | A | A | 99 |
Shopify | SHOP | 99 | 15 | 97 | 95 | A | B | 99 |
Spotify Technology | SPOT | 99 | 2 | 82 | 97 | A | A- | 99 |
Atlassian | TEAM | 99 | 9 | 97 | 95 | A | A | 99 |
Tuya | TUYA | 99 | 15 | 81 | 97 | B | A- | 99 |
Data as of Feb. 18
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Hunting 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 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.