One important metric to look for in a stock is an 80 or higher Relative Strength Rating. ESAB just hit that mark, with a jump from 77 to 82 Thursday.
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IBD's proprietary RS Rating measures technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks matches up against that of all other stocks.
History reveals that the best stocks typically have an RS Rating north of 80 as they begin their biggest runs.
ESAB is working on a consolidation with a 135.97 entry. See if the stock can break out in volume at least 40% higher than normal. Note that it's a third-stage base. Such patterns do sometimes lead to significant gains, but they're more likely to fail than first- or second-stage consolidations.
While EPS growth declined last quarter from 16% to 13%, revenue rose -2%, up from -3% in the prior report.
The company earns the No. 10 rank among its peers in the Machinery-General Industrial industry group. ESCO Technologies, Badger Meter and DXP Enterprises are among the top 5 highly rated stocks within the group.
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.
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