Top Stocks From Our Screens

Markets have entered a confirmed uptrend after interest rates remained unchanged in the latest Fed meeting. Meanwhile, yields have eased back from record highs, sending stocks soaring.

So what should be on investors’ radar? And what stocks are finding a spot on MarketSmith’s top stock screens?




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Automated Lists For Picking Top Stocks

Thanks to tools offered by Investor’s Business Daily, you can rely on automated lists to do much of the stock picking. These lists are designed to highlight the choicest stocks out of thousands. You can then do a deep dive into the handful of stocks that shine.

Three of the best screens on IBD MarketSmith — Accelerating Leaders, Top-Rated Companies and Fastest-Growing Companies — show stocks with strong technical ratings. Novo Nordisk (NVO), Axon (AXON) and ASML (ASML) are top stocks in these screens.

The screens can help you stay focused on top stocks as the market gets boosted or buffeted by economic and other news.

The S&P 500 has powered ahead 14% in 2023 thus far. High-growth names in technology, airlines and homebuilding, among others, have rallied. And hopes of a soft landing have investors searching for new market leaders.

Top Stocks To Buy Now

Among the essential characteristics to look for, fundamentals come first. Even if some of these companies are not profitable, their stock prices can rise if sales growth is exceptional.

A hot market or innovative product can propel sales. When growth accelerates, there are the makings of a real winner.

Chart strength is equally important. This shows the stock’s performance when compared with other companies and the broader indexes.

Remember to keep an eye on volume. High volume can be a positive or negative sign depending on whether the stock is moving up or down. When a stock climbs in high volume, it means that big institutions are picking up shares.

Such buying can drive the stock price up for an extended time. It also pumps liquidity into the stock, which is always a plus for investors.

Novo Nordisk Among Accelerating Leaders

Novo Nordisk is nearing an alternative buy point of 104. Shares gapped up and rebounded from the 10-week line after the company reported earnings on Nov. 2.

Wall Street estimates earnings growth for the drugmaker at 42% for the year. Sales accelerated for the fourth quarter in a row while earnings also continued to grow at a faster clip.

And more mutual funds have been buying shares of NVO during the period, giving the stock an Accumulation/Distribution Rating of B.

NVO stock now has a best-possible Composite Rating of 99 and a stellar Relative Strength Rating of 97. Its Earnings Per Share Rating stands at 97 as well.

Axon Among Top Rated

Axon is nearing a buy point of 217.61 in a cup with handle. Earnings are due Tuesday.

Mutual funds have been net buyers of the stock over the past five quarters, giving the stock its Accumulation/Distribution Rating of A-.

Axon stock has a best-possible Composite Rating of 99 and EPS Rating of 99. Its Relative Strength Rating is 93. Axon makes Taser guns and body cameras for safety.

Fastest-Growing Companies: ASML

Finally, ASML has gapped up above its 50-day moving average, which was a line of resistance in October. Shares are approaching a buy point of 771.98 in a consolidation.

The stock has a Composite Rating of 97 and Earnings Per Share Rating of 98. Its Relative Strength Rating is 79.

The company also holds an Accumulation/Distribution Rating of B-.

ASML provides machinery for the critical process of lithography for making silicon chips.

To find other lists of top stocks, check out IBD Stock Lists and IBD Data Tables. 

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