Top IBD 50 stocks in wide-ranging industries are forming cup bases as the stock market surges. Beverage, chip, airline, energy and biotech plays are among these growth stocks to watch, including Celsius (CELH), Genmab (GMAB), Lattice Semiconductor (LSCC), Equinor (EQNR) and Copa (CPA).
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The dimensions of these bases vary from deep tea cups to big saucers.
Bull market advances underpin most of these patterns as the S&P 500 has surged above the 4,000 level. But earnings and company-specific news are also driving pattern formation.
IBD’s flagship screen of leading growth stocks identifies a handful of companies showing impressive relative strength and top-notch fundamentals. These industry leaders are also highly ranked within their top-performing industry groups.
When picking stocks, it’s wise to choose market leaders within industry groups that are also outperforming other sectors.
The “L” in William O’Neil’s CAN SLIM investing strategy is all about choosing the leaders.
“You should buy the really great companies — those that lead their industries and are number one in their particular fields,” O’Neil writes in Chapter 7 of his book “How To Make Money In Stocks.”
You can start your own research with the IBD Stock Checkup.
Top Stocks With Strong Fundamentals And Technicals
Celsius Holdings has raised the temperature in the energy drink market. CELH stock is on an impressive growth streak, fueled by a rise in health trends and a recent distribution deal with PepsiCo (PEP) that could challenge the sector’s major players.
The Boca Raton, Fla company touts itself as a healthier, functional energy brand. It claimed a 4.9% market share in the third quarter, overtaking Bang Energy as the No. 3 U.S. energy drink. And Wall Street analysts predict it won’t be long before Celsius disrupts the longtime energy drink duopoly between Red Bull and Monster Beverage (MNST).
CELH stock has approached a 118.29 buy point of a cup that started in late August when it posted an all-time high. It is trading well above its 50-day and 200-day moving averages, and just reached a new high on its relative strength line, as indicated by the blue dot on MarketSmith.
Genmab, Lattice Top-Ranked Industry Leaders
Denmark-based biotech Genmab is approaching a 49.17 buy point on a long cup that started to form in September 2021. Like Celsius, Genmab’s relative strength line is also at new highs.
This top stock distributes a handful of cancer treatments, partnering with big biopharma names, including AbbVie (ABBV), Johnson & Johnson (JNJ), Horizon Therapeutics (HZNP) and Seagen (SGEN).
In the September quarter, earnings rose to 53 cents per share while sales reached $551 million. Both measures easily topped forecasts.
Genmab is now expanding its suite of medicines to treatments for new solid tumors and blood cancers.
It could take time for Lattice to reach its buy point of 85.55 on a cup base. But it has a strong RS Rating of 94 and is trading above its 50-day and 200-day moving averages.
The Hillsboro, Ore., designer of programmable gate arrays reported strong third-quarter results on Oct. 31. It posted a profit of 48 cents per share on sales of $172.5 million and raised Q4 revenue estimates above consensus, to the $170 to $180 million range.
Both Lattice and Genmab are ranked first in their respective industry groups.
Equinor And Copa Build Bases
Norway-based energy play and top stock Equinor is building a cup with a buy point of 42.63. Shares sold off more than 3% Friday, along with other oil stocks, as pump prices fell below $3.45 per gallon, according to AAA.
Still, Equinor is trading above its 50-day and 200-day lines, with a lofty 90 RS Rating.
Panama-based airline Copa is forming a long cup base with a buy point of 97.73. The carrier serves 69 destinations across the Americas and is prospering as airlines recover on strong holiday demand and higher ticket prices.
The long Thanksgiving weekend was especially strong for airlines, with Sunday Nov. 27 marking the busiest day since 2019 for U.S. airports, according to Transportation Security Administration data.
Follow Michael Molinski on Twitter @IMmolinski
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Source: https://www.investors.com/stock-lists/ibd-50/top-stocks-in-multiple-industries-build-bases-as-market-gains-strength/?src=A00220&yptr=yahoo