Here’s your IBD Screen Of The Day: A look at outstanding growth stocks featured on the IBD Stock Screener. Today we turn to the Stocks That Funds Are Buying screen. This is a list of companies seeing greater share purchases by institutions.
IBD Stock Screener was launched in 2019 and is found in the Research section of Investors.com. It includes popular lists such as the IBD 50, stocks hitting New Highs and the Top Stocks Under $10.
Nautilus stock is near a buy zone after breaking out of a cup-with-handle base, according to MarketSmith analysis. The ideal buy point is 27.65. This is a first-stage base, which means it has a greater chance of success.
The stock’s relative strength line has been spiking of late. This means it has been outperforming the broader S&P 500. The stock has rebounded powerfully from coronavirus crash lows, and is now up 2,300% on its 12-month lows.
The Stock Checkup shows it holds an Accumulation/Distribution Rating of B, which represents moderate buying among institutions over the past 13 weeks. It also boasts three consecutive quarters of increasing fund ownership. In total, 47% of shares are held by funds.
Nautilus is a consumer fitness products company famed for its strength-training machines. The firm also produces a range of cardio machines. While its primary markets are the U.S. and Canada, it also operates internationally.
Mitek Systems Stock
Mitek Systems stock has been consolidating for the past seven weeks. It is shooting for a buy point of 19.44 in a double-bottom base. The stock has just retaken its 50-day moving average, which is encouraging.
Investors will look to see the software stock’s RS line bounce back as it tries to gain ground, because it has been slipping since Jan. 22.
MITK stock holds a strong Composite Rating of 93. At the moment, its stock market performance is lagging earnings growth. The Stock Checkup shows earnings have grown an average 44% over the past three years. This meets and exceeds CAN SLIM requirements.
The stock has an Accumulation/Distribution Rating of B-, and boasts four consecutive quarters of increasing fund ownership. In total, 46% of its stock is held by funds.
Mitek Systems is a software development company. It develops mobile image capture and digital identity verification products. Noteworthy products include Mobile Deposit, which allows individuals and businesses to remotely deposit checks using camera-equipped smartphones and tablets.
Translate Bio Stock
Translate Bio is in a buy zone after breaking out of a cup base with a 28.14 buy point. The fact it came close to a round-trip sell signal (it nearly erased a 23% rise from the entry) is reason for caution.
The stock’s RS line had been spiking since the start of the year, but has taken a dip in the last couple of sessions.
The stock has a good, but not great, Composite Rating of 89. Its main hindrance is its earnings performance, because the company has yet to turn a profit. It is not expected to make money in 2021, either.
Nevertheless, it holds an Accumulation/Distribution Rating B+, which signals big money sees good potential in the company. In total, half of its shares are owned by institutions.
Translate Bio develops medicines to treat diseases caused by protein or gene dysfunctions. It focuses on messenger RNA, also known as mRNA. Translate Bio has developed MRT5005 for the treatment of cystic fibrosis.
Sorrento Therapeutics Stock
Biotech Sorrento is one to watch as it consolidates, with a handle showing a 17.13 buy point.
The RS line is offering reasons for enthusiasm, as it has been spiking strongly since the start of the year.
The stock has a Composite Rating of 90. Earnings are its biggest weakness, with its EPS Rating of 41 contrasting sharply with its RS Rating of 97.
However big money has been snapping up the stock, with its Accumulation/Distribution Rating of A representing heavy buying. It boasts three quarters of increasing fund ownership, though only 26% of its stock in total is held by funds.
The company operates through its Sorrento Therapeutics and Scilex segments. Sorrento Therapeutics focuses on immune-oncology therapeutics; the Products business includes Sofusa, a drug delivery technology that injects biologics directly into the lymphatic system. Scilex focuses on nonopioid pain management offerings, which include after-shingles pain treatment ZTlido.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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