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MATTHEW GALGANI

Palantir, Netflix Lead 26 'Perfect' Stocks. See The Rest Here.

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.

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 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:

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.

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