Amid accelerating sales and profits growth, highly rated cash management company Brink's got an upgrade to its Relative Strength (RS) Rating. Brink's stock on Monday topped a key milestone, as its RS Rating shot up from 67 to 80.
The 80 RS Rating shows that shares of Richmond, Va.-based Brink's stock outpaced 80% of all stocks over the past 12 months for price performance. It's notable because market research shows that the market's biggest winners often have an RS Rating north of 80 in the early stages of their moves.
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Brink's Stock Among Top 7% Overall
Brink's, known for its distinctive reinforced armored trucks, provides logistics, cash management and security services to businesses and government agencies.
Among its other key ratings, Brink's boasts a 95 Earnings Per Share Rating, out of 99. The 95 EPS Rating puts Brink's in the top 5% of all companies for profit growth the past three years, with emphasis on the two most recent quarters. Its Composite Rating is a strong 92. And, proving strong fundamentals, it has a B SMR Rating (sales + profit margins + return on equity), on an A-to-E scale with A tops. Additionally, it has a B Accumulation/Distribution Rating, pointing to relatively strong buying of its shares by institutions such as mutual funds and ETFs.
Brink's stock is building a consolidation with a 70.15 buy point. See if it can clear the breakout price in heavy volume. Its shares rose about 29% from a 48.38 low at the end of September last year to near 63 Monday afternoon.
Profits, Sales Growth Also Rising
Top and bottom line growth moved higher last quarter. Earnings were up 25% to $2.10 per share, compared to 21% growth the prior report. Brink's revenue increased 8% in its most recent quarter, to $1.19 billion. The company plans to release first quarter earnings results Wednesday morning.
Brink's stock earns the No. 4 rank among its peers in the Security/Safety industry group. Building and fire alarm company Napco Security Technologies is are also among the group's highest-rated stocks. Federal Signal, which sells public warning sirens and fire rescue apparatus, as well as street cleaning and water blasting gear, is also among the top five in the group.
When looking for the best stocks to buy and watch, top investors keep a close on eye on relative price strength.
IBD's unique Relative Strength Rating tracks share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
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