Stock picking may seem like finding a needle in a haystack when markets plunge. But do you even want to pick stocks when bears are mauling stocks? Instead, building a watchlist and waiting to see signs of positive action in a handful of stocks might be the wise thing to do. The right strategy can help you stay on the right side of the stock market.
Growth stocks suffer in volatile conditions and drop off watchlists but there may be a few spots elsewhere that continue to show positive action. One way to spot these would be to see which stocks are outperforming a benchmark index like the S&P 500.
Investor's Business Daily's Stock Screener comes in handy here.
Not many stocks withstood the heavy selling in the stock market Monday. Tech leaders suffered as the Nasdaq plunged ahead of President Donald Trump's tariffs due to take effect Tuesday.
But the IBD screen for stocks with their relative strength at new highs showed 75 stocks. These are stocks that have been outperforming the S&P 500.
Refine Your Stock Picks With The IBD Stock Screener
Only three of them are near buy points. These stocks show a blue dot on IBD MarketSurge — an indication that the relative strength is at a new high as shares attempt to clear a buy point.
In a market correction, stocks with a blue dot may be the best stocks to watch.
Urban Outfitters is trying to get past a buy point of 60.90 from a flat base. Shares have been rallying after fourth-quarter results came out Wednesday.
Sales increased 10% to $1.6 billion while earnings grew 51% to $1.04 per share. The retailer holds impressive ratings: Its Composite Rating and EPS Rating are nearly ideal at 97. Its Relative Strength Rating stands at 94.
Fidelity National Financial is also hitting an all-time high as shares try to break out of a cup base with a buy point of 64.83. Earnings gave the stock a boost on Feb. 21, and the stock has continued to climb.
Q4 sales grew 6% to $3.6 billion while earnings per share of $1.34 rose 79% year over year.
Analysts' estimates suggest that profits will rise 28% to $5.94 per share in 2025 and 17% to $6.96 per share in 2026. The stock has a Composite Rating of 92 but its EPS Rating lags at 69. Fidelity National Financial provides title insurance and other services for the real estate industry.
How Invested In The Stock Market Should You Be Right Now?
Tradeweb Markets is nearing an all-time high of 141.69. That is also its buy point.
The provider of electronic trading platforms has a record of steady sales and earnings over the past eight quarters.
Its Composite Rating is nearly ideal at 98, while the EPS Rating of 97 is outstanding.
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