Is 2025 a Pivotal Year for Biotechs?
As we navigate the complex world of stock market investing, it’s essential to understand the key factors that drive success. In our previous lessons, we covered the IBD Methodology, stock market timing, and how to track changing trends. Now, we’ll dive deeper into the two critical components of finding the best stocks to buy: what to buy and when to buy.
Stock Ratings and Lists: Your Key to Success
When searching for top-performing stocks, it’s crucial to analyze both fundamentals (earnings, company-related criteria) and technicals (share price, volume, and other stock-related factors). IBD’s Stock Checkup provides a comprehensive look at a company’s health, its stock, and the industry group, as well as the general market. This diagnostic tool helps you quickly identify potential stock picks.
IBD Stock Lists: Unbiased and Computer-Generated
With thousands of stocks to choose from, finding the best ones can be overwhelming. IBD Stock Lists streamline your research by identifying top-performing stocks that display the same characteristics as past winners. These lists include:
- IBD 50: Leading growth stocks with strong relative price strength and top-notch fundamentals
- IBD Sector Leaders: The best stocks in 33 sectors, covering over 8,000 publicly traded stocks
- IBD Big Cap 20: Top-rated, large-cap growth stocks to watch
- IPO Leaders: The newest companies showing strong growth potential
When to Buy Stocks: Timing is Everything
IBD’s Take, a short, one-line analysis, highlights chart patterns, buy points, and buy zones for each stock on these top lists. Use the IBD Stock Screener to access these charts and build custom screens based on your own criteria.
Create Custom Stock Screens for Success
With IBD’s tools, you can create custom screens to find the best stocks to buy and watch. IBD’s flagship screen, the IBD 50, gives you 50 companies showing strong relative price strength and top-notch fundamentals. You can also trade the IBD 50 in one transaction with Innovator Capital Management’s IBD 50 ETF (FFTY).
Stock Spotlight: Companies with Strong Earnings and Sales Growth
Stock Spotlight highlights companies with strong earnings and sales growth, high Composite Ratings, and/or stocks near new price highs and above their 50-day moving averages. This curated list focuses on companies with a proven track record of stable earnings growth and long-term relative strength.
Stock Ratings: A Comprehensive Analysis
IBD Stock Checkup provides instant stock ratings, including:
- Composite Rating: A comprehensive score combining fundamental and technical analysis
- Earnings-Per-Share (EPS) Rating: Measures current quarterly and annual earnings growth
- Relative Strength (RS) Rating: Tracks a stock’s share price performance over the last 52 weeks
- Accumulation/Distribution Rating: Tracks large-volume buying and selling over the last 13 weeks
- SMR Rating: Gauges sales growth, profit margins, and return on equity
A Sound Strategy for Buying Stocks
To improve your chances of success, follow a buying checklist that brings together these stock ratings and key factors for stock investing. This checklist will help you streamline your process and make informed investment decisions.
Get Instant Access to Exclusive Tools and Resources
With IBD Digital, you’ll get instant access to exclusive stock lists, expert market analysis, and powerful tools. Learn how to invest in stocks using IBD and The IBD Methodology, and discover how to stay profitable and protected.
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