All of these stocks are actionable from at least early entries, with several also forming new consolidations. Keep in mind that the stock market rally remains under pressure, with breakouts and other entries often struggling.
Iqvia stock, Google and ASML (ASML) are on IBD Leaderboard and the IBD 50 list of top growth stocks. Google stock and ASML also belong to the IBD Long-Term Leaders list. ASML stock also is on SwingTrader.
The relative strength line for Iqvia stock rose to a new high Friday. A rising RS line means a stock is outperforming the S&P 500 index. It is the blue line in the charts shown.
Stock Market Rally: Watch The RS Line
The relative strength line is a quick way to spot winners in any market — up or down.
The Relative Strength At New High stocks list is a great place to look for quality names with strong RS lines. IBD’s stock research platform MarketSmith has a screening tool that identifies stocks with RS lines making new highs.
In addition, the best growth stocks have an IBD Composite Rating of 90 or better.
Iqvia, Synnex and ASML share a near-perfect Composite Rating of 98, followed by Google with a 96 and Zebra stock with a 92. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score.
Alphabet bounced off the 10-week moving average last week, according to MarketSmith chart analysis. It’s just 2.8% above the 10-week line, so it’s well within range. Google stock also has reclaimed its 21-day exponential moving average and has broken a short downtrend.
In April, the Google parent cleared a 2,145.24 flat-base buy point.
The RS line for GOOGL stock is near record highs.
The tech giant has an IBD Relative Strength Rating of 73. That means it has outperformed 73% of all stocks over the past 12 months.
Alphabet earns an EPS Rating of 95 out of a best-possible 99. In the latest quarter, Google almost doubled earnings as sales growth accelerated from 23% to 34%, the highest in at least eight consecutive quarters. Its advertising business, fueled by YouTube, drove gains. Revenue from cloud computing and internet search was also strong.
Google stock should continue to benefit from a rebound in digital advertising as coronavirus vaccinations expand. Stock buybacks are another bright spot.
Iqvia stock owns a strong EPS Rating of 91 and solid RS Rating of 80. In the latest quarter, Durham, N.C.-based Iqvia’s earnings growth accelerated to 45% from 21%, while sales sped up to 24%, the highest growth in at least eight quarters.
Iqvia is a contract resource organization, meaning it helps biopharma companies design their clinical studies, recruit patients and commercialize drugs.
Shares are forming a flat base with a 518.76 buy point. Zebra stock regained the 10-week line this past week and is less than 5% below the entry. Aggressive investors could buy ZBRA stock off the 10-week line.
The flat base is one of the most reliable patterns that top growth stocks form before big price advances. This is a second-stage base, and early (first and second) stage patterns are more likely to succeed than later ones, according to IBD research.
Zebra has an 95 EPS Rating and 83 RS Rating. In the most recent quarter, earnings growth accelerated to 79% from 25% as sales growth sped up to 28% from 10%.
Zebra Technologies designs, makes and sells automatic identification products. These include mobile computers, bar code scanners and radio frequency identification devices readers.
Shares bounced off support at the 10-week line. The rebound for Synnex stock offered an early entry. It’s still just 2.9% above the 10-week line.
Synnex stock will likely have a flat base within a couple of days with a 126.65 buy point.
Synnex has a 96 EPS Rating and 95 RS Rating. The computer and electronics distributor grew earnings 33% in the latest quarter as revenue rose 21%.
SNX stock was Friday’s IBD Stock Of The Day.
ASML stock found support at its 50-day and 10-week lines once again. It’s just a fraction above its 10-week line as well as its 21-day line, and investors could buy the chip-gear giant now, but could wait for a little more strength. ASML stock also appears to be forming a flat base but that would take another week to develop.
ASML stock earns a 98 EPS Rating and 86 RS Rating. In the latest quarter, ASML earnings jumped 264% as sales climbed 90%.
Chip equipment makers like ASML are getting a boost as foundries including Taiwan Semiconductor Manufacturing (TSM) expand capacity amid the global semiconductor shortage.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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