Here’s your IBD Screen Of The Day: A look at outstanding growth stocks to watch featured on the IBD Stock Screener. Today we turn to the Weekly Review screen, which underlines how housing stocks and related names have been outperforming of late. Several of the names featured are in buy zones.
Century Communities (CCS), Green Brick Partners (GRBK), and LGI Homes (LGIH) were among the homebuilders making impressive progress. Meanwhile, TopBuild (BLD), Floor & Decor (FND) and Installed Building Products (IBP) also posted impressive gains.
The relative strength line for Century Communities stock has been making progress, though not as much as its upward spike between early January and mid-February. This line gauges a stock’s progress compared to the broader S&P 500. Its stock has posted a gain just shy of 50% so far in 2021.
CCS stock has a perfect IBD Composite Rating of 99, and shows a strong mix of stock market and earnings performance. Big money has been snapping up the stock of late, which is reflected in its Accumulation/Distribution Rating of A. Whether a stock has institutional support is a key consideration for CAN SLIM investors.
Green Brick Partners is just out of the buy zone after passing a consolidation pattern with a buy point of 25.15. The stock gained a muscular 5% last week and is worthy of adding to one’s watchlist. It boasts a top notch Composite Rating of 97. Earnings are its biggest strength, with its EPS Rating a near-perfect 98 out of 99. It is also being backed by big money, with 62% of its stock currently held by funds.
LGI Homes was one of the biggest winners among homebuilders last week. Its stock gained just shy of 7%. Investors should wait for a new base to emerge, as it has sailed past its profit-taking zone after breaking out from a cup with handle. The ideal buy point there was 125.10.
The relative strength line is looking mighty for LGIH stock, and it has gained more than 58% since the start of 2021. Earnings performance is even better, with its EPS Rating sitting at 98. Earnings have grown by an average 51% over the past three quarters, which is more than double the growth rate sought by the CAN SLIM cognoscenti.
Other Growth Stocks To Watch
TopBuild is in a buy zone after breaking out of a cup base. The ideal buy point is 224.99, according to MarketSmith analysis. It posted a gain just shy of 6% last week.
The RS line has been making serene progress of late. Insulation specialist TopBuild has a very strong Composite Rating of 96. The highlight here is its rare perfect EPS Rating of 99.
Leaderboard stock Floor & Decor is in the buy zone after breaking out of a cup base. The correct entry point is 108.64. It gained 3.6% last week.
One reason for caution is this is a third-stage base. IBD research finds such late-stage bases have less chance of success. Despite this, the relative strength line is continuing to make swift progress.
FND stock has a top notch Composite Rating of 96, with earnings performance once again the stock’s highlight feature. It is also being heavily backed by institutions, with funds holding 69% of its stock.
Installed Building Products is in a buy zone after passing a consolidation buy point of 130.21. IBP stock is the biggest gainer featured last week, rising almost 9%. The installation contractor operates at more than 175 locations throughout the U.S.
The RS line has been rising of late, and is closing on recent highs. Moving higher still would be a bullish indicator.
Once again, earnings are the biggest attraction, with its EPS Rating sitting at 97. And institutional buyers have been taking notice of its excellent fundamental performance, with funds holding 71% of its stock.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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