Major stock market indexes are near record highs and second-quarter S&P 500 earnings were the highest in more than two years. Despite this favorable backdrop, only four stocks made Friday’s Sector Leaders screen from Investor’s Business Daily.

↑
X

NOW PLAYING
How To Make More Money By Handling Faster Market Rotations

True, we’re talking about the most stringent of IBD’s screens. Still, a bull market normally has a larger number of IBD Sector Leaders. Let’s break down the four stocks, starting with the largest, Nvidia (NVDA).

Nvidia stock reversed lower from record highs June 20 and went into a frightful three-day, 16% sell-off. Shares have steadied, for now. Investors who bought at the May 15 breakout at 92.22 may consider taking at least some profits. Nvidia stock is up about 34% from that entry. Investors who bought at lower levels have even more reason to lock in at least some gains.

Before its sudden pullback, Nvidia stock surged to briefly become the world’s most valuable company. Analysts are now debating how much more upside the stock has.

Of the four IBD Sector Leaders, PDD Holdings (PDD) has the most bearish chart. A breakout from a 142.32 buy point is fading, with shares nearly 7% below the entry. The stock has fallen more than 6% below the 10-week moving average, which can be considered a sell signal.

PDD is the parent company of the Temu discount online shopping app. While Temu poses a challenge to Amazon.com (AMZN), the company is confronting the threat with its own discount service.

Not Just Nvidia Stock: Wingstop, Novo Nordisk Make List

With a market capitalization of $12.5 billion, Wingstop (WING) is the smallest of the four IBD Sector Leaders. It’s not surprising to see a restaurant in the list, since the industry group is in the top 30 of 197 groups. But Wingstop is not even the No. 1 stock in the group.

Still, its 65% advance so far this year triples the industry group’s gains. And the chicken-wings chain passes nearly its entire IBD Checklist in IBD Stock Checkup.

Finally, Novo Nordisk (NVO) has climbed more than 140% since it broke out of a double-bottom base in November 2022. After piling on subsequent bases during that run, the stock is at risky period. Shares are above the 144.50 of a three-weeks-tight pattern, so the run may not be over.

The pharmaceutical company’s runway remains long with diabetes and weight-loss drugs that offer blockbuster potential.

YOU MAY ALSO LIKE:

Stock Market Forecast For The Next Six Months Is Stacking Up Well. But Don’t Ignore These Risks.

IBD Live: Learn And Analyze Growth Stocks With The Pros

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest