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MSFT Stock, PANW, CRWD, ZS Lead Screen Of 22 Stocks To Watch As AI Boom Continues

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The artificial intelligence boom has propelled Microsoft (MSFT), cybersecurity leaders Palo Alto Networks (PANW) and Zscaler (ZS), and database firm MongoDB (MDB) onto this list of 22 top-rated stocks to watch. MSFT stock remains in buy range, as does MDB, which reports after the close.




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PANW stock and cybersecurity peer CrowdStrike (CRWD) have blasted beyond their buy zones. CRWD stock made headlines last week as it beat Wall Street’s earnings estimates.

All the names on this stock screen hail from today’s Top 20 industry groups — a factor worth noting since winning stocks tend to come from the top-ranked groups from the 197 industries IBD tracks.

Each company is also outpacing at least 95% of all stocks in terms of key stock-picking factors.

With cloud computing and AI spreading across all industries, Adobe (ADBE), Dropbox (DBX), Open Text (OTEX) and a string of others on this list have tapped into the artificial intelligence revolution. DBX stock poked its head into buy range Friday but now trades just below its 28.68 buy point.

Education Stocks, Fashion Plays Also In Demand

Trendsetters like Lululemon Athletica (LULU), Urban Outfitters (URBN), Ross Stores (ROST) and Skechers (SKX) have also fashioned a spot on this screen. LULU stock is now extended, while SKX trades at the top of its buy zone. URBN stock has slipped below its buy point.

Education stocks New Oriental Education (EDU) and Stride (LRN) have also learned how to impress Wall Street. Both have launched strong breakouts.

MSFT Stock Among Top Stocks In Top-Ranked Industries

Company Symbol Comp Rating EPS Rating RS Rating SMR Rating A/D Rating
CrowdStrike CRWD 99 99 98 A A-
New Oriental Education EDU 99 82 99 B A+
Euronav EURN 99 81 86 A B+
Howmet Aerospace HWM 99 84 89 A A
Dorian LPG LPG 99 99 99 A B+
Stride LRN 99 99 97 B A+
Lululemon Athletica LULU 99 98 92 A B-
MongoDB MDB 99 82 97 B B
Microsoft MSFT 99 97 92 A B
Open Text OTEX 99 89 82 A B
Palo Alto Networks PANW 99 98 95 A B+
Skechers SKX 99 93 92 B A-
Zscaler ZS 99 99 96 A A-
Adobe ADBE 98 96 96 A B-
Dropbox DBX 98 98 88 A B
Gen Digital GEN 98 85 83 A A
Ross Stores ROST 98 86 88 A B+
Urban Outfitters URBN 98 99 90 B B-
Vertex VERX 98 95 97 A B-
Celestica CLS 97 96 98 B B-
Hess Midstream HESM 96 85 84 A B+
Teradata TDC 95 94 85 B B
Data as of Dec. 5, 2023

MSFT Stock Among Top-Rated AI Plays

To make this screen of top stocks to watch in the top-ranked industries, each company must meet the following criteria:

Ratings, of course, are just one part of the equation when evaluating a stock. Be sure to always check the stock chart to gauge when to buy, sell or hold.

Scan the list below and click the symbols to check the stock chart for any bases and buy zones.

Build Your Watchlist With Stock Ratings And Stock Lists

Running stock screens with the IBD Stock Screener or MarketSmith is an effective way to streamline your research to find top-rated stocks to watch like Microsoft.

You can also zero in on the best stocks to watch using IBD stocks lists based on a wide range of preset filters. You’ll find top-rated stocks meeting the criteria of the IBD 50, IBD Sector Leaders, IBD Big Cap 20, IPO Leaders and more.

Meta stock and Tesla stock, for example, earn a spot on the IBD Big Cap 20.

Once you’ve put together potential stock picks for your watchlist, you’ll want to evaluate your ideas with IBD Stock Checkup. With pass, neutral or fail ratings for each of your stocks, IBD Stock Checkup provides a detailed look at both the fundamental and technical health of the companies on your watchlist.

Additionally, based on the CAN SLIM system, the Composite Rating provides an overall score that takes into account each of the IBD ratings. The single score considers how a company and its stock are performing in terms of annual and quarterly earnings growth as well as its relative strength vs. the rest of the market. The score also accounts for sales, profit margins and institutional demand.

But note that you should not buy a stock solely on its ratings or placement on one of IBD’s stock lists. No matter how compelling a company’s story may seem, savvy investors will always check the technical action in the stock chart before buying.

Check The Chart To Know When To Buy MSFT Stock And Others

Using stock lists helps you zero in on the best stocks to watch. Stock ratings look under the hood to diagnose a company and its stock’s fundamental and technical health. Both stock lists and stock ratings help you understand what to buy. But to fully understand when to buy stocks, take a look at the stock chart.

It’s also critical to understand what type of environment you’re currently in. Is it a bull market when most stocks go up? Or a bear market when most stocks go down? Or is it a volatile, choppy and uncertain time when the market indexes tend to fail to make any sustained headway? That was the case for much of 2022.

Use stock charts to evaluate both the market indexes and individual stocks. Charts will help you pinpoint the best time to buy stocks by identifying support and resistance, as well as buy points and buy zones. Using charts also helps you identify warning signs and when to sell stocks.

So when searching for potential stock picks and stocks to watch, always check the charts. They provide the most unbiased diagnosis of a stock’s health.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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