Before a volatile July, Nvidia (NVDA) earned “perfect” status on this screen highlighting companies sporting the highest possible 99 Composite Rating. But following the artificial intelligence juggernaut’s highly anticipated earnings report, Nvidia stock has seen that rating slip to 91 as it crashes below its 10-week moving average with its relative strength line in sharp decline.

Meanwhile, 12 stocks including miners Alamos Gold (AGI), Eldorado Gold (EGO), Iamgold (IAG) and Idaho Strategic Resources (IDR), all glow golden with a 99 Composite Rating. Agnico-Eagle Mines (AEM) and Newmont (NEM) have also dug their way onto that list.

They are joined by defense stocks Howmet Aerospace (HWM) and Heico (HEI).

Three health care-related stocks — Universal Health (UHS), Pennant (PNTG) and Corvel (CRVL) — also make the cut.

While both the Nasdaq and S&P 500 below their 50-day moving averages, many of these “perfect” stock have broken out and climbed beyond buy range.  Yet, selling pressure in the indexes doesn’t mean these gems remains untarnished, a sign for investors to follow sound rules on how to buy stocks and when to sell stocks.

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Miners And Gold Stocks Lead Top Stocks In Top Groups

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.

For example, driven by gold prices, the Mining-Gold/Silver/Gems group ranks a lofty No. 11 among the 197 groups IBD tracks, according to MarketSurge.

Stock Screener Highlights Top-Rated Industry Leaders

Data as of Sept. 6, 2024

Miners Among 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 of course 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 Twitter at @IBD_MGalgani.

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