Monitor New Emerging Leaders Via IBD Stock Spotlight Screen

Investor's Business Daily

It's been nearly one year since the Nasdaq followed through on Nov. 23, the day after Thanksgiving. It was only a half day of trading, but the Nasdaq's 1.4% gain was good enough for a follow-through day for the tech index on the fifth day of its rally attempt.

The market's gone gangbusters since then, presenting investors with plenty of opportunities to make money in growth stocks with top fundamentals.

If you've been paying attention to IBD stock screens this year, you've most likely latched on to some big winners. If you're brand new to IBD, the next several Investor's Corner columns will help you quickly get up to speed on finding great stocks.

Troll Stock Spotlight daily for ideas. In the early stages of a market uptrend, emerging leaders will show up. The list also does a good job of highlighting stocks holding well during periods of market softness. When buyers come into the market again, stocks that held up the best tend to be some of the top performers.

Stock Spotlight got a makeover earlier this year. Weekly charts are bigger, and now come with analysis at the bottom of each chart. See performance data at the top of the page. As of Tuesday's IBD, the S&P 500 is up 24.1% vs. a 43.2% gain for Nasdaq Spotlight stocks and a 35.1% gain for NYSE counterparts.

Each day, the screen generates 16 charts of stocks that are either in bases or just breaking out of bases. The weekly mini-charts are loaded with key fundamental data. Some have top-notch growth, while others might be turnaround situations.

The top two rows of charts house Nasdaq-listed names. The bottom two rows are NYSE stocks. IBD market writers scan the screen, looking for specific themes or actionable setups.

Shares of Nexstar Broadcasting Group (NXST) are up sharply this year. The stock appeared in Stock Spotlight on Jan. 9, a little more than a month after the Nasdaq's follow-through day on Nov. 23. At the time, it was trading just above a double-bottom of 12.05, but hadn't come into the stock yet.

In the week ended Jan. 18, it broke out with conviction, rising nearly 7% and clearing the 13.07 cup-base buy point. It soared 250% over the next nine months.

At the time, Nexstar's Composite Rating was 94; its Accumulation/Distribution Rating was solid at A-. The Media-Radio/TV group was perched high in IBD's daily industry rankings.

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