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Nvidia, Netflix and this popular IPO join the list of 17 ‘perfect’ stocks

Artificial intelligence powerhouse Nvidia (NVDA) agrees Super microcomputer (SMCI), Arm positions (ARM) and Netflix (NFLX) among the stocks to watch with a Composite Rating of 99, the highest possible score. IPO leader CAVA group (CAVA), as well as fellow restaurant stock Texas Roadhouse (TXRH), take a seat at that table too.




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And they are not the only ones.

A total of 17 companies with a Composite Rating of 99 make this stock screen, including Axon company (AXON), Deckers Outside (DEK) and Neurocrine biosciences (NBIX).

The 99 Composite Rating for all of these companies puts them in the top 1% of all stocks in terms of key stock selection factors.

This stock screener also highlights a total of 34 leading companies – including Nvidia, CAVA and others – that earn a Composite Rating of 95 or better, putting them in the top 5% of all stocks. Scroll down to see the full list.

Keep in mind that many of these stocks are outside their buy zones.

But Arm shares continue to make another potential entry after retreating from an all-time high following a huge rally following February earnings reports.

CAVA shares shot past a 48.69 buy point in a cup with handle in early February. The Mediterranean fast-casual restaurant chain performed well after reporting better-than-expected fourth-quarter earnings. A weekly chart shows how CAVA has made big gains in heavy volume since then. Despite a decline this week, the stock remains firmly above its 10-week line.

Meanwhile, Texas Roadhouse is trading within a buy range amid several weeks of tight, healthy trading. But that will be put to the test on Thursday as TXRH shares appear to hold support at the 21-day exponential moving average.

While it’s good to say that these growth stocks continue to show strength and resilience, investors should stay grounded, armed with the eight “secrets” of when to sell stocks. Such rules help investors safeguard their profits and minimize the damage from any pullbacks.

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Nvidia, Netflix and CAVA remain among the top stocks in top groups

All of the names on this stock screen come from today’s top 20 industry groups – a factor worth noting, as winning stocks typically come from the top-ranked groups among the 197 industries IBD tracks.

Investors can use IBD Stock Checkup to track the group rankings and ratings for each of these stocks. Every company on this stock screen outperforms at least 95% of all stocks on key stock selection factors.


Use this stock screener to build custom filters and watchlists


Stock Screener highlights the top-rated industry leaders

Company Symbol Comp rating EPS rating RS rating SMR assessment A/D rating
ACM research ACMR 99 99 98 a B+
Arm positions ARM 99 99 97 a A-
ASML ASML 99 96 92 a b
Broadcom AVGO 99 87 94 a b
Axon company AXON 99 99 92 a b
American Express AXP 99 93 89 a B+
Azek AZEK 99 97 95 b b
Cava group CAVA 99 81 96 a A-
Deckers Outside DECK 99 99 95 a b
Emcor EME 99 98 97 a A+
Neurocrine biosciences NBIX 99 93 82 a b
Netflix NFLX 99 98 93 a b
Nvidia NVDA 99 99 98 a b
Quanta services PWR 99 97 92 a A-
Super microcomputer SMCI 99 94 99 a B+
Texas Roadhouse TXRH 99 88 91 a b
Veeco instruments VECO 99 97 90 b B+
Arlo Technologies ARLO 98 81 91 b B+
Core & Essentials C.N.M 98 89 97 b a
Owens Corning O.C 98 97 90 b B+
PagSeguro Digital PAGS 98 85 92 b b
Qualcomm QCOM 98 87 91 b A-
Block SQ 98 97 88 b B-
Applied materials AMAT 97 87 93 a A-
Griffon GFF 97 96 96 b B-
Garmin GRMN 97 90 89 a B+
Lennar LEN 97 93 89 b b
NetApp NTAP 97 90 90 b a
Toll brothers TOLL 97 90 95 b B+
Crocs CROX 96 90 92 a a
Nuvei NVEI 96 82 89 a A-
Pure storage PSTG 96 92 95 a b
Advanced drainage systems WMS 96 95 93 b b
First viewing restaurant F.W.R.G 95 81 89 b B-
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Data as of April 4, 2024

Nvidia, Netflix and Cava are among the best stocks to watch

To create this screen of top stocks to watch in the highest-ranked sectors, each company must meet the following criteria:

Valuations are, of course, only part of the equation when evaluating a stock. Make sure you always check the stock chart to determine when to buy, sell or hold.

Stock Screener: Build your watchlist with stock ratings and stock lists

Displaying stock screens with the IBD Stock Screener or MarketSurge is an effective way to streamline your research to find the top-rated stocks to watch, such as Nvidia, Netflix, and Cava.

You can also look for the best stocks to watch using IBD stock lists based on a wide range of preset filters. You’ll find the highest rated stocks that meet the criteria of the IBD 50, IBD Sector Leaders, IBD Big Cap 20, IPO Leaders and more.

Currently, you’ll see CAVA stock listed on IPO Leaders and Arm on the IBD 50. Nvidia and Netflix both earn a spot on the IBD 50 and IBD Big Cap 20 screens. Nvidia is also on the IBD Sector Leaders list, our most stringent screening.

Once you’ve compiled potential stock picks for your watchlist, you’ll want to evaluate your ideas with IBD Stock Checkup. With a pass, neutral, or fail rating for each of your stocks, IBD Stock Checkup provides a detailed overview of both the fundamental and technical health of the companies on your watchlist.

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In addition, the Composite Rating, based on the CAN SLIM system, provides an overall score taking into account each of the IBD ratings. The single score looks at how a company and its shares perform in terms of annual and quarterly earnings growth and its relative strength against the rest of the market. The score also takes into account turnover, profit margins and institutional demand.

However, keep in mind that you shouldn’t buy a stock based solely on its ratings or placement on one of the IBD stock lists. No matter how compelling a company’s story may seem, smart investors will always check the technical action on the stock chart before buying.

Check the chart to know When To buy Nvidia, CAVA and others

Using stock lists can help you find the best stocks to watch. Stock ratings look under the hood to diagnose a company and the fundamental and technical health of its stock. Both stock lists and stock ratings will help you understand this What to buy. But to fully understand it when To buy shares, look at the stock chart.

Meanwhile, it is also crucial to understand what kind of environment you are currently in. Is it a bull market, when most stocks rise? Or a bear market, when most stocks fall? Or is it a volatile, choppy and uncertain time where market indices tend not to make sustainable progress?

Use stock charts to evaluate both market indices and individual stocks. Charts help you determine 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 always check the charts when looking for potential stock picks and stocks to watch. They provide the most unbiased diagnosis of a stock’s health.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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