PANW stock, Zim Integrated Shipping Services (ZIM) and KBR (KBR) count among this week’s top stocks to watch, along with Live Entertainment Nation (LYV) and Photronics (PLAB).
Palo Alto Networks (PANW) and these other stocks are showing relative price strength and setting up, as the market tries to rebound. Several are just below buy points after rebounding powerfully off key technical levels. But in the current wild market, investors should be building watchlists of stocks showing bullish traits, rather than focusing on buys.
In addition, ZIM stock earns a spot on the IBD 50 list of top growth stocks.
On a weekly MarketSmith chart, four of the five stocks have relative strength lines hitting bullish new highs while in bases, indicated by a blue circle at the end of their RS lines. The RS line for Zim shipping stock, the exception, is just below the Feb. 17 high.
A rising RS line means that a stock is outperforming the S&P 500 index. It is the blue line in the charts shown.
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The relative strength line is a quick way to spot winners in any market — up or down.
The Relative Strength At New High stocks list is a great place to look for quality names with strong RS lines. IBD’s stock research platform MarketSmith has a screening tool that identifies stocks with RS lines making new highs.
In addition, the best growth stocks have an IBD Composite Rating of 90 or better, out of a best-possible 99.
Most of the stocks to watch this week meet that bar. Zim Integrated Shipping and Photronics stock lead with a perfect Composite Rating of 99 each. They are followed by KBR stock with a 96 and Palo Alto Networks with a 92. Live Entertainment just misses the 90 threshold, with an 89. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score.
The cybersecurity stock surged Friday further above the 50-day moving average, a rare growth stock showing bullish traits in the…