Nvidia (NVDA) — the Wall Street wonder wowing investors amid the artificial intelligence boom — is showing resilience after a rash of selling stirred debate over its value. But the AI powerhouse still holds a spot alongside Microsoft (MSFT) and Apple (AAPL) in the $3 trillion market-capitalization club. Like Nvidia, fellow semiconductor industry leader Broadcom (AVGO) has retreated below recent all-time highs. Nonetheless, Nvidia stock and Broadcom remain among 19 “perfect” stocks highlighted by this stock screener.
↑
X
Want Triple-Digit Gains? Here’s How To Find Surprising Stocks With Big Returns.
Chip industry peer Arm Holdings (ARM) has also etched its name on the list as Arm stock shows resilience to climb back into buy range.
Recent negative reversals aside, Nvidia reigned supreme on this month’s list of new buys by the best mutual funds. These savvy investors scooped up over $3.32 billion worth of NVDA shares. Arm Holdings also made the list.
Nvidia, Broadcom and Arm all maintain the highest-possible 99 Composite Rating along with the other names on this screen.
While not classified as one of the Magnificent Seven stocks alongside Microsoft, Apple and Nvidia, Broadcom actually tops Tesla (TSLA) in terms of market cap weighting on the Nasdaq. As of Thursday’s close, AVGO stock accounted for 2.1% vs. 1.8% for Tesla.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
AI Play SMCI Dips Along With Other Techs
Super Micro Computer (SMCI), which recently introduced liquid-cooled AI data center systems running the latest Nvidia chips, also makes this elite list. After jumping back above its 10-week moving average last week, SMCI stock just found support at and bounced off that benchmark line on Thursday. The stock closed the session with nearly a 7% gain for the day. Super Micro is down early Friday.
Return Of The King: Nvidia Back On Top — In More Ways Than One
Sharing a 99 Composite Rating, Brazilian bank Nu Holdings (NU) joins Arm stock on the IPO Leaders screen. Warren Buffett-led Berkshire Hathaway (BRKB) owns shares of Nu stock, according to a May 15 filing. Nu stock flashed a negative reversal June 24 but bounced back the next day.
Nvidia Among Top Stocks In Top Groups; Cava Exits
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, the fabless semiconductor group — home to Nvidia, Broadcom and Arm — ranks No. 4, according to MarketSurge.
Note that leading restaurant stocks Cava Group (CAVA) and Texas Roadhouse (TXRH) still earn the highest-possible Composite Rating, but no longer have a spot on this stock screen due to a change in the group’s performance. The restaurant group has slipped to No. 30.
Stock Screener Highlights Top-Rated Industry Leaders
| Company | Symbol | Comp Rating | Ind Group Rank | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Argan | AGX | 99 | 9 | 90 | 97 | B | B+ |
| Arm Holdings | ARM | 99 | 4 | 99 | 99 | A | A |
| Broadcom | AVGO | 99 | 4 | 87 | 96 | A | C |
| AstraZeneca | AZN | 99 | 10 | 86 | 84 | A | B- |
| Blue Bird | BLBD | 99 | 15 | 81 | 98 | A | B+ |
| Celestica | CLS | 99 | 14 | 99 | 99 | B | B+ |
| Costamare | CMRE | 99 | 3 | 96 | 97 | A | A- |
| Deckers Outdoor | DECK | 99 | 2 | 99 | 96 | A | B- |
| Fabrinet | FN | 99 | 14 | 94 | 96 | A | B- |
| Granite Construction | GVA | 99 | 9 | 92 | 93 | B | B |
| Hess Midstream | HESM | 99 | 18 | 94 | 80 | A | B+ |
| Himalaya Shipping | HSHP | 99 | 3 | 80 | 96 | B | B |
| Eli Lilly | LLY | 99 | 10 | 90 | 96 | A | B |
| Nvidia | NVDA | 99 | 4 | 99 | 99 | A | C- |
| Super Micro Computer | SMCI | 99 | 6 | 99 | 99 | A | B- |
| Texas Pacific Land | TPL | 99 | 11 | 91 | 94 | A | B |
| Veeco Instruments | VECO | 99 | 7 | 98 | 97 | A | B- |
| Vital Farms | VITL | 99 | 20 | 81 | 99 | B | B+ |
| Western Midstream Partners | WES | 99 | 18 | 90 | 93 | A | B- |
Data as of June 28, 2024
Broadcom, Nvidia 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 like Nvidia, Broadcom and Cava.
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.
Currently, you’ll find ARM and NU on IPO Leaders. Arm stock makes the IBD 50 and IBD Big Cap 20. Meanwhile, Nvidia earns a spot on IBD 50 and IBD Sector Leaders, our most stringent screen.
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 CAN SLIM system, 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 Nvidia, Cava And Others
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.
YOU MAY ALSO LIKE:
Nvidia, 4 Other Stocks Boast Trifecta Of Perfect IBD Ratings
Cava Group CEO Brett Schulman Takes Mediterranean Diet National
Stock Picks: Google, Nvidia Reveal 7 Telltale Traits To Monitor
Generate New Stock Ideas With IBD Stock Screener
Identify Bases And Buy Points With This Pattern Recognition Tool
