Artificial intelligence powerhouse Nvidia (NVDA) has — again — delivered a jaw-dropping earnings report. Nvidia stock catapulted on the news, continuing to soar to new highs as it earns the highest-possible 99 Composite Rating. But Nvidia, along with IPO Leader Cava Group (CAVA), are just two of 23 "perfect" companies highlighted by this stock screener.
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After soaring more than 15% last week, Nvidia fell Thursday but remains on pace for around a 4% gain for the week.
Cava, a 2023 IPO that also joins the "perfect" club with a 99 Composite Rating, showed its resilience Wednesday. The stock initially sank after reporting earnings late Tuesday, but shares of the Mediterranean-food restaurant chain rebounded powerfully Wednesday to close with a 7% gain. Cava stock jumped again Thursday, putting it on pace to serve up more than a 12% gain for the week.
IBD just profiled CEO Brett Schulman, the CEO in the .
Meanwhile, fellow restaurant stocks Chipotle Mexican Grill (CMG) and Texas Roadhouse (TXRH) also make this stock screen. Both CMG and TXRH trade right around their all-time highs.
Featured as the IBD Stock Of The Day on May 22, Powell Industries (POWL) also joins Nvidia, Cava and the others. Seen as a stealth AI play with a small, but growing data-center components business, POWL stock just blasted out of buy range from a cup with handle.
Nvidia, Cava And CMG Among Top Stocks In Top Groups
All the names on this stock screen hail from today's Top 20 industry groups — a factor worth noting since winning stocks tend to come from the top-ranked groups among the 197 industries that IBD tracks.
Nvidia's fabless semiconductor group, for example, ranks No. 2. The restaurant group, which includes Chipotle, Cava and Texas Roadhouse, also ranks in the Top 20 at No. 19.
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Stock Screener Highlights Top-Rated Industry Leaders
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| Agnico-Eagle Mines | AEM | 99 | 97 | 92 | B | B+ |
| Blue Bird | BLBD | 99 | 81 | 99 | A | A+ |
| Cava Group | CAVA | 99 | 80 | 98 | A | A |
| Chipotle Mexican Grill | CMG | 99 | 97 | 92 | A | B |
| Costamare | CMRE | 99 | 96 | 95 | A | A+ |
| Deckers Outdoor | DECK | 99 | 99 | 97 | A | A- |
| Emcor | EME | 99 | 98 | 97 | A | B+ |
| First Solar | FSLR | 99 | 82 | 97 | A | A+ |
| Fortuna Silver Mines | FSM | 99 | 91 | 98 | B | A+ |
| Granite Construction | GVA | 99 | 92 | 93 | B | B+ |
| Hudbay Minerals | HBM | 99 | 80 | 98 | B | B+ |
| Harmony Gold Mining | HMY | 99 | 99 | 97 | A | B+ |
| Himalaya Shipping | HSHP | 99 | 80 | 95 | B | A- |
| IamGold | IAG | 99 | 80 | 95 | B | B+ |
| IES Holdings | IESC | 99 | 97 | 98 | B | A+ |
| Inter | INTR | 99 | 80 | 94 | B | B- |
| Nu Holdings | NU | 99 | 80 | 93 | A | B |
| Nvidia | NVDA | 99 | 99 | 98 | A | B- |
| nVent Electric | NVT | 99 | 92 | 95 | A | A- |
| Powell Industries | POWL | 99 | 81 | 99 | A | A- |
| Super Micro Computer | SMCI | 99 | 99 | 99 | A | B- |
| Texas Roadhouse | TXRH | 99 | 95 | 93 | A | A |
| Vital Farms | VITL | 99 | 81 | 99 | B | A+ |
Data as of May 30, 2024
Nvidia And Cava 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:
- Industry group rank: from 1 to 20 (on IBD's 197 industries list).
- Composite Rating: 99.
- EPS Rating: 80 or higher.
- Relative Strength Rating: 80 or higher.
- SMR Rating: A or B.
- Current share price: $12 or more.
- 50-day daily average volume: 400,000 shares or more.
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 CAVA stock on IPO Leaders. Texas Roadhouse stock and POWL make the IBD 50. Nvidia pulls off a trifecta, landing on the IBD 50, IBD Big Cap 20 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.
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