SolarEdge (SEDG), Advanced Micro Devices (AMD), Twilio (TWLO), EXP World (EXPI), and Innovative Industrial Properties (IIPR) are five top stocks above buy points heading into the final weeks of a wild 2020.
AMD and Twilio stock are in buy range from proper buy points. SolarEdge and IIPR stock are above early entries and close to official buy points. EXP World stock blasted through the buy zone, but could pull back into range or form a short consolidation.
AMD stock, Innovative Industrial Properties and EXP World are on IBD Leaderboard.
Top Stocks With High Ratings
One way to find the best stocks is to look at their IBD Composite Ratings. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity and relative price performance.
AMD stock tops the group with a best-possible 99 rating. EXP World has a 97 rating, SolarEdge a 95 rating. Innovative Industrial Properties has a 93 rating and Twilio rounds out the group with a 92 rating.
Investors generally should focus on stocks with a Composite Rating of 90 or higher. But the rating is only a single metric and investors should take others into consideration when deciding to buy or sell stocks.
EXP World Stock
EXP World is a cloud-based real estate brokerage that processes real estate transitions. The company went public in 2018 and didn’t turn a profit until Q4 2019.
But EXP World has soared during the coronavirus pandemic. The company said it closed a record number of transactions in the third quarter as the Covid-19 social distancing rules restricted in-person meetings. EXP World CEO Glenn Sanford said the company is seeing a “really strong” housing market so far in Q4 as people move to change up their living situations during the pandemic.
EXPI stock broke out of cup base with a 62.60 buy point on Friday, according to MarketSmith analysis. Its relative strength line, which measures a stock’s performance against the S&P 500, also hit a new high Friday, another sign of strength.
EXP World stock rose 8.6% to 87.04 on Friday, slightly extended from the 5% chase zone.
Shares could pull back into the buy zone, or form a new consolidation slightly above the cup base. One issue with cup bases, especially with the stocks that roar from the bottom, is that they don’t form a handle to shake out weak holders. That sometimes results in high handles or consolidations after a breakout.
Additionally, EXPI stock has a middling EPS Rating of 75 out of a best possible 99. The stock was Thursday’s IBD Stock of the Day.
SolarEdge is an Israel-based company that makes products to convert a solar panel’s direct current into alternating current. Analysts expect the election of Joe Biden to be a boon for renewable energy companies.
The solar stock tumbled last month after revenue and outlook came in below expectations. But SEDG stock rebounded that week, closing in the upper half of its range and nearly retaking its 10-week line. The horrible damage on a daily chart looks almost bullish on a weekly chart. On a weekly chart, SolarEdge stock has been finding support at the 10-week line.
On Friday, SEDG stock jumped as high as 305.44, breaking past a 298.91 buy point from the handle on a cup base. But shares pared gains to up 6.6% at 291.51. That’s still above a downward-sloping trend line in the handle, offering a place to start a position.
SolarEdge stock is ranked third in IBD’s Energy-Solar group.
Advanced Micro Devices makes central processing units, or CPUs, for personal computers as well as graphics processing units, or GPUs, for PCs, gaming consoles and data centers.
The company is the top-ranked stock in IBD’s Electronic-Semiconductor (Fabless) group and is ranked No. 5 on the IBD 50 list. As well as having a top Composite Rating, it also has a perfect 99 EPS Rating.
AMD stock finished the week down 1 cent at 91.65. That’s still within the buy zone. Investors could also consider buying the chipmaker if it clears a short consolidation at record highs.
Twilio offers a cloud communications platform for voice, text, chat, video and email applications. On Thursday, TWLO stock, broke out from a cup-with-handle base with a buy point of 333.72.
Despite announcing plans late Thursday to offer 9.52 million shares, Twilio stock extended its breakout on Friday, closing at 342.41. For the week, TWLO stock rose 7.2% to a record high, rebounding from its 10-week line. But it’s still in a buy zone.
Twilio stock was the IBD Stock Of The Day on Wednesday. It has an EPS Rating of 77 out of a best possible 99. Its relative strength line is moving sideways after a run-up earlier this summer.
Innovative Industrial Properties Stock
Innovative Industrial Properties is a REIT that buys and leases industrial real estate used for growing medical marijuana. As of Nov. 4, Innovative Industrial Properties owned 63 properties across 16 U.S. states.
Cannabis has a lot of room to grow in the future. Marijuana won big during the election last month, with five states voting to legalize some type of marijuana use.
Innovative Industrial Properties stock is in a three-weeks-tight pattern with a 165.09 buy point. The pattern will likely turn into a short, flat base in the next few trading sessions, also with the 165.09 entry.
But IIPR stock is above early entry points, including 160.25, and above the bulk of the current consolidation.
Innovative Industrial Properties stock was an IBD Stock Of The Day last month and is also on the IBD 50 list.
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