MarketSurge charts are a great way to research top stocks from a fundamental and technical perspective. On a weekly chart, the last eight quarters of earnings and sales are shown. In terms of technical analysis, pattern recognition technology helps users identify which top stocks are forming the best bases.
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But a research feature in MarketSurgegives you extensive industry group information for top stocks, which is another critical part of a growth investor's toolbox. Broad-based leadership in a group is good to see when assessing a stock's prospects.
At the top left of every chart, just to the right of the company name, a link is provided with the stock's industry group and where it ranks in IBD's 197 industry group rankings. Groups are ranked based on six-month price performance.
Click the link for an industry group chart so you can see if the group is in an uptrend or downtrend. Just like individual stock charts, industry group charts can reveal bullish or bearish technical pictures.
To the right of the industry group chart, users can click on the edge of the chart to bring up additional research.
The "Overview" tab gives you a variety of data and performance metrics. This tab shows whether an industry group has been working its way higher in the rankings.
The "Stocks In Group" tab lists all the stocks in the group sorted by market capitalization. This is a great way to identify the most liquid names in a group and to view the charts of each component, one by one.
Top Stocks In A Group
The "Top Stocks" tab gives you the group leaders based on their combined Earnings Per Share Rating and Relative Price Strength Rating. Below that is a list of stocks closest to their 52-week highs. This is a quick way to gauge an industry group's underlying strength. The broader the leadership in a group, the better.
Finally, the "Sector" tab shows you all the industry groups in the sector and where they rank in the 197 industry group rankings.
In July of 2020, homebuilders were on a tear amid strong demand — and low interest rates. IBD's homebuilding group broke out to new highs that month, helped by news that June 2020 existing-home sales jumped 20.7% from May. New home sales in June 2020 also soundly beat forecasts.
Group leader LGI Homes (LGIH) joined Leaderboard on July 7, 2020, when it broke from a deep cup with handlewith a 95.34 buy point. The gain from the entry hit 20% within three weeks, triggering the eight-week hold rule. The rule was created to give a potential big market leader room to work.
Based on its combined EPS and RS Rating, LGI Homes was tops in the homebuilder group. Small-cap M/I Homes (MHO) came in at No. 4 at the time. It broke out over a 38.88 buy point in July 2020 and made gains at a moderate pace after that.
This article was originally published July 24, 2020 and has been updated. Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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