An easy way to find top-notch growth stocks is to use the IBD Stock Screener. Wednesday’s “Relative Strength at New Highs” screen finds stocks meeting stringent IBD criteria making new highs along their relative strength lines.
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The relative strength line measures a stock’s price performance compared to the S&P 500. An uptrending line means the stock is outperforming the S&P 500, while a downtrending line means it is lagging behind the S&P 500.
Out of the 24 stocks selected in today’s stock screen, we highlight three which have constructive charts. But remember that the stock market is still in a downtrend, making new purchases risky.
Stock screener finds the stock in a bullish pattern
comfort systems According to MarketSmith pattern recognition, (FIX) stock formed a three-week bullish pattern with 182.94 buy point.
Comfort reported better-than-expected second-quarter earnings and sales after the market closed on July 26.
The stock rose 5.1% on July 28 after UBS raised its price target to 174 from 162 and maintained its neutral rating. Comfort’s stock hit a 52-week high on August 8.
Quarterly earnings grew a hearty 65% on 27% sales growth. Analysts estimate full-year EPS growth of 42% this year and 12% next year.
Mutual funds held 69% of the industrial stocks at 643 in June, up from 616 in March and 573 in December.
Comfort Systems is ranked No. 1 of 11 stocks in the Building-A/C and Heating Products industry group. The group is ranked 9th out of 197 IBD industry groups.
The company is a building and service provider for mechanical, electrical and plumbing building systems.
Quanta hits 52-week high
IBD 50 Infrastructure Stock Quanta Services (PWR) hit a 52-week high on Wednesday. The shares traded tighter in light volume and formed a reversal of a three-week-tight pattern called a 4-week-tight pattern with a 206.43 buy point.
The shares were tested and found support at the 10-week moving average.
Quanta reported lower-than-expected profit and higher sales in the second quarter on 3 August. Quarterly earnings were up a modest 7% on 19% sales growth. Analysts expect profit growth of 13% this year and 15% in 2024.
Mutual funds increased their position in the stock, owning 1,923 shares in June, up from 1,856 in March and 1,806 in December.
Quanta Services is ranked No. 2 out of 20 stocks in the Building-Heavy Construction industry group. The group is ranked 17th out of 197 IBD industry groups.
Quanta provides engineering and construction services to the electric power, renewable energy, oil and gas and communications industries.
Stock screener finds biotech stock has reached buy point
disc therapy (IRON) shares are in the 5% buy zone on Wednesday after the cup-with-handle base hit the 55.51 buy point.
The stock’s RS line moved closer to a buy point and hit a new 52-week high, as shown by the blue dot on the MarketSmith chart. Shares have gained an impressive 181% so far this year. That performance earned the stock its best possible 99 IBD Relative Strength Rating.
Disc Medicine hasn’t generated any revenue yet but it has treatments in the pipeline. Disch specializes in developing treatments for rare blood disorders.
The biotech company reported a smaller-than-expected loss on August 11. The encouraging results prompted Wedbush to raise its price target to 79 from 58 and maintain its outperform rating. Meanwhile, HC Wainwright raised his target from 66 to 70 with a buy rating.
Mutual funds are discovering this gem of a stock, as there were 115 owned stocks in June, up from only 39 in March. The IBD Mutual Fund Index Component T. Rowe Price New Horizons (PRNHX) Fund bought 100,000 shares in the second quarter.
Follow Kimberly Koenig on Twitter for more stock market news @ibd_kekoenig,
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