Nothing is forever, and that most assuredly applies to sector leaders in the stock market. Leaders are replaced as market conditions change, or they can be supplanted due to underlying factors. Some sectors or companies may enter a higher growth phase.
Nvidia and Qualcomm power much of the world’s technology. And with 750 chipmakers building the brains and the insides of our digital devices, competition in the sector has never been hotter. These companies and AI stocks are also a huge force on Wall Street and generate big price moves in the market. So what do investors need to know about this critical industry?” vid-name=”Semiconductor Stocks: How The AI Chip Boom Is Priming The Sector For Growth” vid-cat=”Industry Insights” vid-date=”11/29/2023″ vid-date-tmsp=”1701255670″ vid-image=”https://www.investors.com/wp-content/uploads/2023/11/4X7D594z-640×360.jpg” vid-authors=”MEREDITH HEYMAN”>
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But when a stock’s price performance matches growth trends, sector leaders emerge. Having a pulse on which stocks are leading can give investors an upper hand.
The Investors Business Daily’s sector leaders list highlights stocks that display superior performance in the market and back that up with sound growth in sales and earnings. Companies making the list include a key chipmaker, but there also are players in health care, financials, software and construction.
Nvidia Stock Continues To Lead Chips
It’s no surprise that Nvidia (NVDA) continues to head the chips sector. Shares have rebounded from the 50-day moving average after a pullback and are already extended from a buy point near 818. Nvidia is on track to form a flat base on its weekly chart, however, with a buy point of 974.
Nvidia stock has rallied as the company delivered astounding results for three straight quarters amid growth in demand for its advanced artificial intelligence chips.
For the current quarter, analysts expect the growth to continue with sales of $24.5 billion or a 240% increase from the prior year. Earnings are seen growing 459% to $5.08 per share.
The tech titan’s superior stock performance shows up in its Relative Strength Rating of 98 along with its best-possible scores of 99 in EPS Rating and Composite Rating. They show Nvidia continues to outperform all the other stocks in the IBD database.
Apollo Rises From 50-Day Line
Heading the finance sector, Apollo Global Management (APO) is also rising from its 50-day moving average according to IBD MarketSurge. Shares broke out from a buy point of 93.18 and rallied into a profit zone after fourth quarter results on Feb. 8.
Sales grew 128% to $11 billion while earnings per share of $1.91 rose 26%. Apollo ranks third in the finance and investment management group. Apollo provides alternative investment management products and services. The sector leader has a Composite Rating of 97 and an EPS Rating of 95. Its Relative Strength Rating is also a high 92.
Both Apollo and Nvidia stock are holdings in IBD Leaderboard.
Ideal Breakout For HubSpot
HubSpot (HUBS) achieved an ideal breakout on Wednesday and is in a buy zone. Shares surged past the buy point of 660 in high volume.
The enterprise software leader has a record of steady sales and earnings growth over the last eight quarters. That has earned the stock an EPS Rating of 99. Fourth quarter sales rose 24% to $581.9 million.
Earnings were 59% higher at $1.76 per share. For the first quarter, the company expects sales of $597 million and earnings of $1.49 per share. HubSpot ranks second in the specialty enterprise software group.
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