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 93 or higher, which puts them among the best growth stocks to watch.
Ten stocks currently make the Global Leaders list. Here are several hot stocks that investors might consider adding to their watchlists.
Four Hot Stocks To Watch
Zim Integrated Shipping Services (ZIM) is about 3% away from a 60.19 buy point of a cup with handle. The base is second-stage, since the stock rallied 26% from an August breakout to the start of the current pattern. Prior to that, ZIM stock formed an IPO base soon after its Jan. 28 debut.
Zim is a container-freight operator based in Israel. Due to global supply-chain issues, shipping costs have surged over the past year, benefiting shipping fleets like Zim.
IBD Stock Checkup assigns Zim a 98 Composite Rating, which gives investors a quick way to gauge a stock’s key growth traits. That leads the 28-stock ship transportation group. An 84 Earnings Per Share Rating, part of the overall composite score, also puts Zim among the group’s hot stocks.
The company reported Q3 results on Nov. 17. Earnings rocketed 794% vs. the year-ago period, to $12.16 per share. Revenue soared 210% year over year, to $3.14 billion.
Greece-based Star Bulk Carriers (SBLK), in the same group, is building the right side of a 13-week consolidation with a 26.10 buy point. Last week, the stock climbed back above its 10-week line. It’s about 9% away from the entry.
The base started to take shape in mid-September, after a failed breakout attempt from a prior cup with handle. Star Bulk, with a 93 Composite Rating and 90 EPS Rating, is also among the group’s leaders. A 97 Relative Strength Rating places the carrier in the top 3% of all stocks.
Growth Stocks Finding Support
STMicroelectronics (STM) leapt 4% to extend a rebound off its 50-day moving average. That sets up a buy opportunity but with the market in correction, all purchases are highly risky. STM stock cleared a 47.48 buy point of a cup base in late October.
The Switzerland-based semiconductor products maker primarily serves telecommunication, automotive and industrial markets. STM bounced back from two quarters of declines with 47% or higher profit growth the past four quarters. It scores a 97 for both its EPS and composite ratings.
Mimecast (MIME) gapped up and soared nearly 6% in fast turnover as it rebounds off the 10-week moving average. It’s extended from a 71.55 buy point of a cup base, according to MarketSmith chart analysis.
The U.K.-based cybersecurity provider said it’s being acquired by private equity firm Permira for $80 a share, or $5.8 billion, in an all-cash deal, Barron’s reported. Last month, Permira was among private-equity investors that bought security software maker McAfee for over $14 billion.
Follow Nancy Gondo on Twitter at @IBD_NGondo
Need Your Help Today. Your $1 can change life.