Buying stocks in the current environment is a risky proposition. But in market corrections, investors should continue to create and refine their lists of stocks to watch. A good starting point is the Investor's Business Daily Breakout Stocks Index, which currently features a barrage of insurance stocks, energy plays, mining firms and one recent initial public offering from China.
So while risk management and rules for when to sell stocks take priority, keep time-tested guidelines for how to buy stocks close at hand. Since Wall Street history shows that new uptrends tend to begin amid doom-and-gloom headlines, savvy investors stay disciplined and on the hunt, especially when the market is down.
Here's a quick look at the companies currently headlining the Breakout Stocks Index, which gets updated weekly. Investors should note the while the markets are in correction mode, caution is advised when examining a stock's buy zone or entry point.
Insurance Stocks To Watch
Including Ryan Specialty and Aon, a total of nine companies from the broad insurance sector have secured a spot on the IBD Breakout Stocks Index. Ryan was the March 12 IBD Stock Of The Day, while Aon was featured Monday on IBD Leaderboard.
The two are among several insurance stocks trading in or near what would normally be a buy zone. Other insurance stocks to watch that fit the same bill include Skyward Specialty Insurance, Hartford Insurance Group, Chubb, Old Republic International and First American Financial.
W.R. Berkley and Brown & Brown are extended from their recent breakouts.
See All Names On The IBD Breakout Stocks Index
Hot China Biotech IPO Blasts Higher
While the Nasdaq remains mired below its key moving averages, Ascentage Pharma continues to soar.
The Chinese biotech firm, which just went public in January, shot past a 21.40 entry point in its IPO base on March 28. The IPO stock now earns the highest-possible A+ Accumulation/Distribution Rating and a strong 2.1 up/down volume ratio. Anything above 1.0 points to demand.
Ascentage Pharma develops therapies to help restore the normal cell death process in cancer and other diseases.
Oil & Gas Stocks Pump Up Relative Strength
Four companies from the oil-and-gas sector have also fueled a spot on the IBD Breakout Stocks Index.
TechnipFMC, Dnow, Hess and Kinder Morgan are targeting new breakouts.
Note how the relative strength lines for TechnipFMC, Dnow and Kinder Morgan are at or near a 52-week high, a clear sign of market leadership. While short of a new high, Hess' RS line is on the rise.
Gold Stocks Shine In Tarnished Market
Mining and precious metals stocks also have emerged on the IBD Breakout Stocks screen. Shares of Wheaton Precious Metals and Agnico-Eagle Mines have blasted out to record highs. While far off its all-time high, Barrick Gold is mining a first-stage cup pattern with a 21.35 conventional entry.
Agnico-Eagle Mines has secured a spot on the IBD 50, IBD Big Cap 20 and IBD Leaderboard.
Education Stocks Up As Trump Eyes Shutdown
As President Donald Trump looks to shut down the Department of Education, Adtalem Global Education and Laureate Education set up new breakouts.
Showing their outperformance compared to the S&P 500, the relative strength lines for both education stocks have risen sharply, earning a coveted blue dot in MarketSurge.
Adtalem is working on a second-stage base with a 112.44 entry. Laureate is taking aim at a 21.73 buy point in an also early stage consolidation.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities exchange traded fund from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
