Today’s IBD Screen Of The Day column focuses on the Global Leaders list of the IBD Stock Screener. The screen looks for foreign-based companies with solid IBD Ratings that are near new highs. Only a few stocks are near buy areas, however.
Analyzing InMode Stock
InMode, based in Israel, cleared a cup-with-handle base, according to MarketSmith analysis, with a buy point of 87.10. Shares remain near the upper edge of the 5% buy zone, which tops out at 91.45. The relative strength line of InMode is near highs, a good sign.
The maker of medical equipment maintains a perfect IBD Composite Rating of 99. The company’s year-over-year EPS has grown by an average 117% over the past two quarters. This well exceeds IBD’s CAN SLIM requirements for top growth stocks.
The company has emerged as one of the leading medical aesthetic firms as a provider of energy-based, minimally-invasive surgical treatments.
InMode’s proprietary products are used to remodel fatty tissue in a variety of procedures, including face and body contouring. InMode has plans to expand into the ophthalmology market, while increasing market share in the plastic surgery, dermatology, and OB/GYN markets.
One negative point is InMode’s light fund ownership. About 200 funds owned the stock at the end of March. But that number has been accelerating in recent quarters as fund managers embrace the company’s growth story.
Singapore-Based Semiconductor Stock
Kulicke & Soffa stock has had an impressive 2021 so far, rising about 77% year to date. Shares have been trading above the 50-day moving average in recent weeks after dipping below this area of support for a couple of weeks. The Singapore-based semiconductor firm is about 7% away from the 61.34 buy point.
The relative strength line has risen sharply over the past few weeks. On the positive side, the company maintains a Relative Strength Rating of 93, which is above the minimum 80 we look for in growth stocks. Kulicke & Soffa also has a Composite Rating of 99.
In the most recent quarter, year-over-year earnings rose 385% to $1.26 a share. The company is expected to show rising EPS growth for the upcoming quarter of 548% to $1.36 a share, according to IBD data.
Growth Stocks To Watch: Freedom Holding
Freedom Holding, a Kazakhstan-based company that provides security brokerage and other financial services, broke out from a double-bottom base last week, according to MarketSmith analysis. The buy point is 58.20. Shares got extended from the buy area but could be going back in buy range after shares reversed lower Wednesday afternoon.
The relative strength line of Freedom Holding has been trending sharply higher since the end of June. This compares a stock’s performance with that of the S&P 500. Freedom Holding holds a year-to-date gain of about 19% in 2021, still outperforming the major indexes.
The company maintains a near-perfect IBD Composite Rating of 98. The company’s year-over-year EPS growth has accelerated over the past two quarters, from 167% to 929% in the most recent quarter. This well exceeds IBD’s CAN SLIM requirements for top growth stocks.
The growth stock ranks No. 1 in its industry group by Composite Rating, according to IBD Stock Checkup. The industry group itself ranks a strong No. 51 out of the 197 groups IBD measures.
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