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These Stocks Show Strength In IBD Stock Screener, Pass Buy Points Amid Market Turbulence

Here’s your IBD Screen Of The Day: a look at outstanding growth stocks featured on the IBD Stock Screener. Today we are looking at the Relative Strength At New Highs screen. Each of these names making this list are managing to outperform the broader market, even as the indexes are forced lower.




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The current cream of this crop are MaxLinear (MXL) and First Republic Bank (FRC). Both are around buy zones, while each boasts top notch IBD Composite Ratings.

MaxLinear Stock

MaxLinear stock is in a buy zone after breaking out of a consolidation pattern, according to MarketSmith analysis. The ideal buy point is 38.81. The stock has just staged a bullish rebound from its 50-day line, which can also be used as an entry point.

The relative strength line for MXL stock has been rising of late, and has just hit a new high. This is a bullish indicator for its breakout, as it measures a stock’s performance compared to the broader S&P 500 index.

The stock boasts a Relative Strength Rating of 88, which puts it in the top 22% of stocks in terms of market performance over the past 12 months. At the peak of its recent highs it was up around 450% on its 12-month lows.

MaxLinear stock holds a near-perfect IBD Composite Rating of 98. Earnings are lagging stock market performance, but are improving. EPS has accelerated for the past three quarters.

Big money is also getting behind the stock, a key consideration for CAN SLIM investors. Its Accumulation/Distribution Rating has shot up to A+, the highest possible rating. The strong A/D rating indicates heavy institutional buying of the stock in recent weeks.

MaxLinear is a provider of RF, analog, digital and mixed-signal integrated circuits. It is a supplier for cable and satellite broadband communications and the connected home, and wired and wireless infrastructure markets. It is benefiting from the push for 5G adoption.

Earlier this month the firm posted an earnings beat. Revenue also came in above views, increasing 178% year on year to $194.7 million.

The recent IBD 50 Stocks To Watch pick has just announced a collaboration with Facebook (FB) to explore new ways to “bring fast, reliable internet to those without it.”

Last year the firm snapped up Intel‘s (INTC) Home Gateway Platform Division assets. The division’s products include Wi-Fi Access Points, Ethernet and Home Gateway SoC, which are supplied to the operator and retail markets. MaxLinear is also benefiting from last year’s acquisition of NanoSemi. Its technology enables higher throughput connections for 5G and Wi-Fi base stations and smartphones. It also reduces energy consumption.

“In the fourth quarter, we posted record revenue, up 24% sequentially, due to stronger-than-expected demand for broadband access and connectivity products,” MaxLinear CEO Kishore Seendripu said in a news release. “The fourth quarter represented the first full of quarter of ownership of the Intel and NanoSemi assets, with which we are making tremendous progress on the respective integration efforts.”

First Republic Bank Stock

FRC stock is now in a buy zone after breaking out of a narrow flat base. The correct entry point here is 166.92. It has been on a charge since bouncing off its 50-day line.

While the relative strength line for First Republic Bank stock has been suffering periodic pullbacks, it has generally been making progress since late September. It is now at record high levels.

The stock is now up around 150% on its 12 month lows. It is also up more than 17% since the start of 2021.

FRC stock has a strong Composite Rating of 93. For this stock it is earnings performance that is the standout, which is reflected in its EPS Rating of 89. Over the past three quarters earnings have grown by an average 17%. This is just shy of CAN SLIM requirements.

Institutions are also getting behind this stock. It holds an Accumulation/Distribution Rating of B, which represents moderate buying.

The San Francisco-based firm operates through its Commercial Banking and Wealth Management segments.

Its Commercial Banking segment’s activities include gathering deposits, originating and servicing loans, and investing in securities.

Wealth Management’s main activities include managing investments for individuals and institutions.

Wedbush Securities analyst David J. Chiaverini is rating First Republic Bank stock as outperform with a 175 target. He praised the firm for delivering “exceptional growth” amid a mortgage market boom.

“We maintain our outperform rating driven by the company’s defensively positioned loan portfolio that should withstand the effects of Covid-19 better than peers and our expectation for stronger-than-peer loan and deposit growth, which should drive above-average earnings growth,” he said in a research note.

Other Growth Stocks Reaching New Highs

A number of other noteworthy stocks have made their way onto the Relative Strength At New Highs screen. These include agriculture machinery giant Deere (DE), Boot Barn (BOOT), Jefferies Financial (JEF) and Victoria’s Secret parent L Brands (LB)

Investors should consider using the IBD Stock Screener as a tool to scout out potential winners which they can then add to their watchlists. They can then take action when opportunities, such as a rebound or the formation of a new base, emerge.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

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