No time to analyze? Try these 7 market leaders

Market Overview

What’s happening in the market right now? Major trends and shifts are affecting our investments. The market is dynamic, and staying informed is key. But who has the time to keep up with every little detail?

And why should you care about these trends? Understanding the big picture helps you make better investment decisions. In a nutshell, focusing on market leaders can save you time and provide stability in your portfolio.

Why Market Leaders?

Market leaders offer several benefits. They have established reputations and are less volatile than smaller companies. This means your investment is likely to be more secure.

And how do you identify these leaders? Look for companies with a strong track record, consistent performance, and a dominant position in their industry. Now, let’s get to the exciting part: the seven market leaders you should consider.

Micron Technology (MU)

• Industry Rank: 9/197
• Base Type: Cup
• Base Depth: 19%
• Buying Point: $130.74
• Stop-loss: $121.59
• Profit Target: $158.20
• Pros: High RS rating, market-leading industry.
• Cons: Only one quarter of positive earnings.
• Comments: Not a CAN SLIM stock but low-risk buy.

Micron Technology is a standout in the tech sector. Its high RS rating indicates strong performance. Despite only one quarter of positive earnings, it’s a low-risk buy. I recommend buying at $130.74 with a stop-loss at $121.59 and a profit target of $158.20.

Western Digital (WDC)

• Industry Rank: 9/197
• Base Type: Cup
• Base Depth: 15%
• Buying Point: $77.05
• Stop-loss: $71.66
• Profit Target: $93.23
• Pros: Similar metrics to Micron Technology.
• Cons: Only one quarter of positive earnings.
• Comments: Good buy but not a CAN SLIM stock.

Western Digital shares many strengths with Micron. It’s another solid choice for your portfolio. Buy at $77.05, set a stop-loss at $71.66, and aim for a profit target of $93.23.

Carrier Global (CARR)

• Industry Rank: 20/197
• Base Type: Flat base
• Base Depth: 12%
• Buying Point: $66.37
• Stop-loss: $63.05
• Profit Target: $76.33
• Pros: Strong buying pressure, institutional ownership up.
• Cons: Earnings and sales growth not rapid enough.
• Comments: Good buy despite not being a CAN SLIM stock.

Carrier Global shows strong buying pressure and institutional support. It’s a great addition if you’re looking for stability. Buy at $66.37, place a stop-loss at $63.05, and target a profit of $76.33.

Agnico-Eagle Mines (AEM)

• Industry Rank: 7/197
• Base Type: Cup
• Base Depth: 21%
• Buying Point: $69.27
• Stop-loss: $65.80
• Profit Target: $79.66
• Pros: CAN SLIM stock, outperforming 92% of the market.
• Cons: Institutional ownership trend is down.
• Comments: Small position advised with tight stop-loss.

Agnico-Eagle Mines is a CAN SLIM stock with impressive market performance. Despite a downward trend in institutional ownership, it’s worth a small position. Buy at $69.27, use a stop-loss at $65.80, and aim for $79.66 in profits.

Eduardo Gold (EGO)

• Industry Rank: 7/197
• Base Type: Consolidation
• Base Depth: 29%
• Buying Point: $15.66
• Stop-loss: $14.87
• Profit Target: $18.00
• Pros: Positive stock performance metrics.
• Cons: Relatively volatile.
• Comments: Almost a CAN SLIM stock, suitable for small position.

Eduardo Gold shows all the right signs of momentum. It’s a bit more volatile but still a strong pick. Buy at $15.66, set a stop-loss at $14.87, and target $18.00 for profits.

Wabtec (WAB)

• Industry Rank: 5/197
• Base Type: Cup
• Base Depth: 18%
• Buying Point: $170.96
• Stop-loss: $162.41
• Profit Target: $196.60
• Pros: Strong earnings trend, low selling pressure.
• Cons: Sales growth below 20%.
• Comments: Almost a CAN SLIM stock, confident buy.

Wabtec is another strong contender with robust earnings trends. It’s almost a CAN SLIM stock. Buy at $170.96, use a stop-loss at $162.41, and aim for $196.60.

Texas Roadhouse (TXRH)

• Industry Rank: 18/197
• Base Type: Flat base
• Base Depth: 7%
• Buying Point: $170.10
• Stop-loss: $161.48
• Profit Target: $195.98
• Pros: Strong uptrend, low selling pressure.
• Cons: Sales growth below 20%.
• Comments: Not a CAN SLIM stock, but a good buy.

Texas Roadhouse has a solid uptrend with minimal selling pressure. Although not a CAN SLIM stock, it’s still a good investment. Buy at $170.10, place a stop-loss at $161.48, and target $195.98.

Micron Technology (MU)

• • Next EPS Date: 26 Jun
  • Industry Rank: 9/197
  • Stage: 2
  • Base Type: Cup
  • Base Depth: 19%
  • Up/Down Ratio: 1.5
  • EPS Trend: Neutral
  • RS Rating: 96
  • RS Trend: Up
  • Institutional Ownership Trend: Neutral
  • Pros:
    • Market-leading stock in a leading industry
    • High RS rating
    • Acquired by the market
    • Neutral EPS Trend indicates low risk
  • Cons:
    • Only one quarter of positive earnings
  • Comments:
    • Pivot price is $130.54
    • Favorable buying range from $130.54 to $130.64
  • CAN SLIM, SEPA: Not entirely a CAN SLIM stock
  • Maximum Position Size: 10%
  • Maximum Favorable Buying Price: $130.74
  • Stop-Loss: $121.59
  • Profit Target: $158.20
  • Position Risk: 7%

Western Digital (WDC)

• • Next EPS Date: 31 Jul
  • Industry Rank: 9/197
  • Stage: 1
  • Base Type: Cup
  • Base Depth: 15%
  • Up/Down Ratio: 1.2
  • EPS Trend: Neutral
  • RS Rating: 96
  • RS Trend: Up
  • Institutional Ownership Trend: Neutral
  • Pros:
    • Similar metrics to Micron Technology
  • Cons:
    • Only one quarter of positive earnings
  • Comments:
    • Pivot price is $76.92
    • Favorable buying range from $76.92 to $77.05
  • CAN SLIM, SEPA: Not entirely a CAN SLIM stock
  • Maximum Position Size: 10%
  • Maximum Favorable Buying Price: $77.05
  • Stop-Loss: $71.66
  • Profit Target: $93.23
  • Position Risk: 7%

Carrier Global (CARR)

• • Next EPS Date: 25 July
  • Industry Rank: 20/197
  • Stage: 2
  • Base Type: Flat base
  • Base Depth: 12%
  • Up/Down Ratio: 1.6
  • EPS Trend: Up
  • RS Rating: 89
  • RS Trend: Neutral
  • Institutional Ownership Trend: Up
  • Pros:
    • Earnings growth is accelerating
    • High buying pressure indicated by up/down ratio
  • Cons:
    • Earnings and sales growth are not rapid enough
  • Comments:
    • Stock price has broken out of the base
    • Close to EMA 21, suggests a buying opportunity with a stop order below EMA 21
  • CAN SLIM, SEPA: Not a CAN SLIM stock
  • Maximum Position Size: 5%
  • Maximum Favorable Buying Price: $66.37
  • Stop-Loss: $63.05
  • Profit Target: $76.33
  • Position Risk: 5%

Agnico-Eagle Mines (AEM)

• • • Next EPS Date: NA
    • Industry Rank: 7/197
    • Stage: 1
    • Base Type: Cup
    • Base Depth: 21%
    • Up/Down Ratio: 1.7
    • EPS Trend: Neutral
    • RS Rating: 92
    • RS Trend: Neutral
    • Institutional Ownership Trend: Down
    • Pros:
      • CAN SLIM stock from a leading industry
      • Stock outperforming 92% of the market
      • Accumulated by the market
    • Cons:
      • Institutional ownership trend is down
      • EPS trend could be higher
    • Comments:
      • Market reacted well to earnings
      • Price at EMA 21 line, suggests small position with tight stop-loss
    • CAN SLIM, SEPA: CAN SLIM stock but not breaking out of base
    • Maximum Position Size: 5%
    • Maximum Favorable Buying Price: $69.27
    • Stop-Loss: $65.80
    • Profit Target: $79.66
    • Position Risk: 5%

Eduardo Gold (EGO)

• • • Next EPS Date: NA
    • Industry Rank: 7/197
    • Stage: 2
    • Base Type: Consolidation
    • Base Depth: 29%
    • Up/Down Ratio: 1.6
    • EPS Trend: Up
    • RS Rating: 94
    • RS Trend: Up
    • Institutional Ownership Trend: Up
    • Pros:
      • Strong stock performance metrics
      • Market reacted well to earnings
    • Cons:
      • Last base was relatively deep, indicating higher volatility
    • Comments:
      • Signs of price volatility
      • Low stock price, suggests taking up to 5% position with tight stop-loss
    • CAN SLIM, SEPA: Almost a CAN SLIM stock
    • Maximum Position Size: 5%
    • Maximum Favorable Buying Price: $15.66
    • Stop-Loss: $14.87
    • Profit Target: $18.00
    • Position Risk: 5%

Wabtec (WAB)

• • • Next EPS Date: NA
    • Industry Rank: 5/197
    • Stage: 1
    • Base Type: Cup
    • Base Depth: 18%
    • Up/Down Ratio: 1.1
    • EPS Trend: Up
    • RS Rating: 94
    • RS Trend: Up
    • Institutional Ownership Trend: Up
    • Pros:
      • Leading industry stock
      • Strong earnings trend
      • High confidence in price due to all metrics being positive
    • Cons:
      • Price not breaking out of base
      • Sales growth slightly below required threshold
    • Comments:
      • Consider taking a 10% position with up to 5% stop-loss below EMA 21
    • CAN SLIM, SEPA: Almost a CAN SLIM stock
    • Maximum Position Size: 10%
    • Maximum Favorable Buying Price: $170.96
    • Stop-Loss: $162.41
    • Profit Target: $196.60
    • Position Risk: 5%

Texas Roadhouse (TXRH)

• • • Next EPS Date: NA
    • Industry Rank: 18/197
    • Stage: 2
    • Base Type: Flat base
    • Base Depth: 7%
    • Up/Down Ratio: 1.5
    • EPS Trend: Up
    • RS Rating: 92
    • RS Trend: Neutral
    • Institutional Ownership Trend: Neutral
    • Pros:
      • Low selling pressure indicated by shallow base depth
      • Good stock performance metrics
    • Cons:
      • Institutions not eagerly adding positions
      • Sales growth below 20%
    • Comments:
      • Price close to EMA 21, trend up
      • Suggests buying up to 5% position with stop-loss just below EMA 21
    • CAN SLIM, SEPA: Not a CAN SLIM stock due to insufficient sales growth
    • Maximum Position Size: 5%
    • Maximum Favorable Buying Price: $170.10
    • Stop-Loss: $161.48
    • Profit Target: $195.98
    • Position Risk: 5.07%

Terms and Definitions

Ever felt like trading lingo was designed just to keep amateurs out of the loop? Let’s simplify a couple of terms:

EMA 21 Calculates the 21-period exponential moving average, highlighting short-term trends.

SMA 50 Averages the price over 50 periods, showing medium-term trends without overemphasizing recent data.

SMA 200 Averages the price over 200 periods, revealing long-term trends by treating all data equally.

Pivot price is the optimal buy point of a stock is defined as the moment it transitions from a stable basing area or chart pattern and begins to achieve new highs in price.

Industry Rank Investor’s Business Daily’s system that ranks industries 1 to 197 based on performance. It guides us in CAN SLIM TRADING towards leading sectors.

U/D Ratio Measures stocks closing up versus down. A ratio above 1.0 indicates bullish sentiment, important in CAN SLIM TRADING.

RS Rating Ranks a stock’s performance on a 1 to 99 scale. I look for at least 85, showing strong momentum and growth potential.

RS Line Compares stock price to the market, plotted as a ratio. We seek an uptrend, indicating outperformance and strong momentum.

Volatility Measures how much a security’s price fluctuates over time. High volatility means large price changes, indicating risk and potential reward.

Institutional Ownership Trend indicates whether the stock is under accumulation or distribution by the institutions.

EPS (Earnings Per Share): A financial metric calculated by dividing a company’s net profit by the number of its outstanding shares. It indicates the amount of profit attributed to each share of stock, serving as a key indicator of a company’s profitability.

Stage 1: Basing or Bottoming Stage

Definition: A period following a stock’s decline where it starts moving sideways, forming a base. This stage signifies the easing of downward pressure and the beginning of stabilization, indicating that the stock is not in an uptrend yet but is preparing for potential future growth.

Stage 2: Advancing or Uptrend Stage

Definition: The phase in which a stock breaks out of its base on significant volume, indicating a strong buying interest and the initiation of a new uptrend. This stage is considered the most opportune time for investors to purchase the stock, as it is expected to achieve substantial gains.

Stage 3: Top or Peaking Stage

Definition: A stage characterized by the stock beginning to exhibit signs of losing momentum after its upward movement. The stock may start to move sideways with increased volatility compared to Stage 1. This suggests the stock might be reaching its peak, and the existing uptrend could be weakening.

Stage 4: Declining or Downtrend Stage

Definition: This final stage occurs when the stock breaks down from its Stage 3 pattern and enters into a downtrend, marked by a sequence of lower lows and lower highs. It signifies that selling pressure has surpassed buying interest, usually serving as a signal for investors to sell the stock to mitigate further losses.