Insurer Erie Indemnity rode out the recent market correction better than most stocks, a sign of strength. After falling from an all-time high in September last year, it consolidated and traded at closed at 408.69 on Nov. 5.
In the intervening five-plus months its stock never traded below 367, where it bottomed in late January. Wednesday afternoon Erie traded at 407.04, up fractionally for the day. On Wednesday, Erie Indemnity stock received an upgrade to its Relative Strength (RS) Rating, from 66 to 79. That puts it just 1 point below a key benchmark.
Market research shows that the stocks that go on to make the biggest gains often have an RS Rating of above 80 in the early stages of their moves. See if Erie Indemnity can continue to rebound and hit that benchmark.
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Among its other key ratings Erie boasts a 95 Composite Rating out of a best-possible 99. The 95 rating puts Erie among the top 5% of stocks overall, regardless of industry. Additionally it has a 94 EPS Rating and a B- Accumulation/Distribution Rating on an A+ to E scale. The B- rating shows that ETFs, mutual funds and the like are buying more shares than selling.
Now is not an ideal time to jump in since it isn't near a proper buy zone, but see if the stock is able to establish and enter a buying range in heavy volume.
While revenue growth fell last quarter from 16% to 13%, EPS grew 37%, up from 22% in the prior report. The company is expected to report its latest results on or around Apr. 24.
The company earns the No. 7 rank among its peers in the 16-stock Insurance-Brokers industry group. Ryan Specialty Holdings, Brown & Brown and Kingstone are among the top 5 highly rated stocks within the group. The group itself ranks a strong 41 on IBD's list of 197 industry groups.
The exclusive Relative Strength Rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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