These Five 95+ Composite Rating Stocks Are Just Below Buy Points

Five top stocks with IBD Composite Ratings of 95 or higher are closing in on buy points: Urban Outfitters (URBN), Veeva Systems (VEEV), Copart (CPRT), Automatic Data Processing (ADP) and Jazz Pharmaceuticals (JAZZ). Urban Outfitters stock, Veeva stock and Copart stock all entered buy range intraday but hit resistance and closed just below their buy points.

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Top Stocks With High Ratings

Jazz stock leads this group of top stocks with a highest-possible Composite Rating of 99, followed by Veeva stock with a 98. ADP stock earns a 96 while Urban stock and Copart stock both have a 95. The Composite Rating includes factors like earnings growth, profit margins, return on equity and relative price performance. Those with ratings above 95 are part of an elite group, and top stocks typically have high Composite Ratings when launching big runs.

Stocks Moving On Earnings

The vast majority of breakouts we’ve seen lately are related to earnings. Urban Outfitters, Veeva Systems, Copart and ADP have not yet issued their June-quarter reports, and Jazz issued its results last Tuesday. So heavy-volume breakouts from these names that are not in reaction to earnings would be a signal of strength. However, volume for all of these names was lighter than average on Friday.

Urban Outfitters Stock

The millennial-focused apparel retailer finished Friday up 1.6%, pennies below a 48.34 buy point from a flat base. The relative strength line poked into new high ground as Urban Outfitters stock hit a new all-time high intraday, but retreated from that level as the stock pared gains.

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When a stock breaks out, heavy volume indicates support from fund managers and other large investors. Seeing the RS line at new high ground is another bullish indicator, as that signals market outperformance.

Veeva Stock

Veeva stock is trading 1% below an 84.34 buy point from a double-bottom base after edging above that level in intraday trade. The double-bottom base is one of the most profitable chart pattern, and can be the launchpad of serious price gains. But this medical software stock has yet to clear the entry with conviction.

ADP Stock

Like Veeva, ADP stock has formed a double-bottom base. The outsourcing services firm is 1% below a 140.49 buy point. ADP lost support at the 50-day line on July 30, but quickly recovered to complete the second half of the “W” in the base.

Keep in mind that for the double bottom, the buy point is 10 cents above the middle peak rather than the left-side high of the base.

Copart Stock

Online vehicle auctions company Copart closed Friday’s session 29 cents below a 60.53 flat-base buy point. Copart stock has seen relatively weak volume for the majority of the base’s formation. You typically want to see volume come into a stock as it climbs the right side of the base. We call that accumulation.

Copart is a member of the IBD 50 list of leading growth stocks, as is Jazz Pharma.

Jazz Stock

Jazz stock is looking to hold support at the key 50-day moving average. Shares are trading 4% below a 1844.10 entry point from a flat base. Jazz recently reported accelerating earnings and sales growth, but hasn’t seen too much upside momentum in the trading sessions following its report.

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The post These Five 95+ Composite Rating Stocks Are Just Below Buy Points appeared first on Investor's Business Daily.

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