Investors searching for hot stocks near buy points should make a habit of checking out IBD Screen Of The Day, which focuses on a list of top ideas in the IBD Stock Screener. All the lists in Stock Screener offer a look at stocks with bullish characteristics.
Today we focus on Global Leaders — with a technical analysis angle. All three featured stocks score a Composite Rating of 91 or higher, which puts them among the best growth stocks to watch.
STMicroelectronics (STM) is slightly extended from a 40.69 buy point of a 13-week consolidation, according to MarketSmith chart analysis. The buy range topped out at 42.72. But since the stock gapped past the buy point on July 29, it remains in buy range from a higher entry.
The Switzerland-based chipmaker cleared its recent base in late July, after posting Q2 earnings that soared 230% on a revenue increase of 43%. That marked a second straight quarter of acceleration in profit and sales growth. STMicroelectronics also boosted its full-year sales outlook.
“During the second quarter, we were again operating with a backdrop of strong demand, stretching the global supply chain,” President and CEO Jean-Marc Chery said on the earnings call. “At the same time, we were and are optimizing our investments to increase our manufacturing capacity.”
Hot Stocks: Top-Notch Ratings
InMode (INMD) is rebounding off its 10-week moving average for the second time since its June breakout from a cup with handle. That sets up a chance for investors to buy or add shares. At the same time, taking some profits is an option, since shares have rallied more than 20% from the 87.10 buy point. But InMode stock hasn’t shown signs of topping yet.
IBD Stock Checkup assigns InMode a best-possible 99 for its Composite Rating and Earnings Per Share Rating. The EPS Rating reflects a 161% five-year compound earnings growth rate. Analysts expect profit to rise 55% this year and 7% the next. Over the past three quarters, revenue is up an average 186% vs. year-ago levels.
Israel-based InMode, which makes devices for medical aesthetics, is one of the hot stocks on IBD Sector Leaders. Companies making this list meet IBD’s most stringent criteria for growth stocks.
Big Dividend Payer
Popular (BPOP) is finding support along its 50-day line as it works on a shallow consolidation with an 83.82 buy point. It’s about 10% from the entry. The base is first stage. Shares have rallied 34% this year, easily outpacing the S&P 500’s 18% gain.
Puerto Rico’s largest banking firm has delivered double-digit or higher earnings growth in the past four quarters. Last month, Popular reported Q2 results that topped views on both the top and bottom lines. EPS grew 79% year over year, while revenue increased 10%.
“The second quarter was another strong quarter in which we achieved net income of $218 million,” President and CEO Ignacio Alvarez said on the earnings call. “Our results reflect the continued rebound in economic activity and the unprecedented level of federal stimulus. They also reflect our diversified sources of revenue and prudent risk management.”
Popular recently lifted its dividend by a nickel to 45 cents a share. That works out to a 2.4% annualized yield, vs. the S&P 500’s average payout of 1.3%.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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