The IBD 50, a list of growth stocks that are screened based on recent strong earnings growth and sound technical ratings, finds several stocks setting up bases with buy points on watch.
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With the stock market looking more firm, investors have more of these growth stocks to consider.
Catalyst Pharmaceuticals (CPRX) is building the right side of a cup base with a buy point of 17.32, despite a tumble Friday. The company has the only FDA approved treatment for Lambert-Eaton myasthenic syndrome (LEMS), which affects muscle response to neural signals.
The Coral Gables, Fla., company has perfect Composite and Relative Strength Ratings of 99. Its relative strength line, which compares the stock’s performance with the S&P 500, is at a 52-week high. Sales grew 59% to $57.2 million with earnings of 26 cents that grew 86% from last year.
Natural gas transporter Flex LNG (FLNG) was in a consolidation and is forming a cup base with a 37.09 buy point. It has a Composite Rating of 99 and a strong Relative Strength Rating of 91. The growth stock also boasts a relative strength line at new highs on the weekly chart. Sales of $84.2 million grew 28% from the previous year while earnings of 83 cents notched a whopping 246% growth.
Flex owns 13 natural gas carriers, 12 of which are in a long term fixed rate charter contract. The company will report third-quarter earnings Tuesday before the open.
CF Industries (CF) is in a consolidation with a buy point of 119.70. It has a Composite Rating of 97 and Relative Strength Rating of 96. Sales of $7.7 billion grew 25% while earnings of 63 cents saw 31% growth. The Deerfield, Ill. company makes hydrogen and nitrogen products for clean energy, fertilizer and other industrial applications.
IBD 50 Lithium and Solar Plays Are High Growth Stocks
Solar leader Enphase Energy (ENPH) has a Composite Rating of 99 and a Relative Strength Rating of 97. Shares of the growth stock are in a cup-with-handle base with a buy point of 316.97. The stock tried to break out Friday but retreated. Earnings of $634.7 million grew 81% from last year while earnings per share of $1.25 showed a 108% increase.
The Fremont, Calif.-based company makes solar micro inverters for homes and businesses. The inverters convert direct current from solar panels to the alternating current that is compatible with the grid.
Sociedad Quimica y Minera (SQM) is in a cup base with a buy point of 115.82. Its RS line is at a new high. Second-quarter sales of $2.6 billion grew over 300% while earnings per share of $3.01 grew a whopping 870% from last year. The Chilean company is best known for being a major supplier of lithium. SQM will report earnings Thursday.
Livent (LTHM) is in a cup base with a buy point of 36.48. It has a Composite Rating of 97 and RS Rating of 95. The growth stock’s RS line has a blue dot on its weekly MarketSmith chart.
Livent’s sales of $231.6 million grew 124% while earnings per share of 41 cents grew over 900%. The Philadelphia-based company is a pure lithium play and makes lithium batteries for electric vehicles, smartphones, aircraft and other products.
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Source: https://www.investors.com/stock-lists/ibd-50/growth-stocks-and-ibd-50-leaders-enph-sqm-lthm-cprx-flex-cf-set-up-entry-points-after-strong-earnings/?src=A00220&yptr=yahoo