Track leading stocks

How to Track Leading Stocks in the Current Market

ByIsabella Harris

If you want to outperform the market with IBD’s growth strategy, you need to know which stocks are leading right now. Identifying leadership early allows you to enter at the right time and ride powerful price trends.

In this post, you’ll learn how to track leading stocks, evaluate them using IBD metrics, and spot the next breakout opportunities.

What Makes a Stock a “Leader”?

In IBD terms, a leading stock has:

  • Explosive earnings growth
  • High Relative Strength (RS Rating) – usually 90+
  • Strong Composite Rating – ideally 90+
  • Support from institutions
  • Tight chart action and breakouts on volume

These stocks often appear on the IBD 50, Big Cap 20, or Sector Leaders lists.

Understand IBD ratings better:
➡️ IBD Stock Ratings Explained: Composite, RS, and EPS Ratings

Best Tools to Track Leading Stocks

Here are the top resources for identifying market leaders:

1. IBD 50

Updated weekly, this list ranks 50 high-performing growth stocks. It’s ideal for finding new breakout candidates.

2. MarketSmith Growth 250

A premium screening tool that filters top stocks using CAN SLIM criteria and technical setups.

3. Sector Leaders List

Shows leading stocks in top-performing sectors—helpful for combining strong stocks with strong industries.

Learn to spot sector shifts here:
➡️ How to Spot Sector Rotation in the Stock Market

How to Evaluate Leading Stocks

Once you find potential leaders, apply these filters:

  • Quarterly EPS growth ≥ 25%
  • Sales growth ≥ 20%
  • Strong price trends with rising volume
  • Fund ownership increasing over the past quarters

Also review the chart setup. A leader should be forming a base or breaking out with high volume.

When to Buy Leading Stocks

Track them daily and watch for:

  • Breakouts from sound bases like cup-with-handle or flat base
  • Pullbacks to support on low volume (a secondary entry point)
  • Volume spikes confirming institutional demand

Review breakout tactics here:
➡️ How to Use Price and Volume Action in Market Analysis

Common Mistakes

  • Buying late after a leader is extended from its buy point
  • Chasing hype without confirming fundamentals and technicals
  • Ignoring RS and Composite Ratings

Stay focused on quality, not popularity.

Final Thoughts

To succeed in IBD investing, you must constantly track leading stocks in the current market. The right leaders can deliver outsized gains—but only if you spot them early, evaluate them objectively, and buy them at the right time.

FAQs

What defines a leading stock?
High earnings growth, strong price performance, top RS and Composite ratings, and institutional sponsorship.

Where can I find leading stocks?
IBD 50, MarketSmith Growth 250, and Sector Leaders are the best places to start.

Should I buy every stock on the IBD 50?
No. Use technical analysis and confirm buy points before entering.

How often should I track leading stocks?
Daily, especially during confirmed uptrends. Markets change quickly.

Can a leading stock stop leading?
Yes—watch for breakdowns, heavy volume selling, or failing earnings reports.

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