One important metric to look for in a stock is an 80 or higher Relative Strength Rating. ESAB cleared that benchmark Monday, with a jump from 79 to 83 Monday.
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IBD's unique rating tracks price action with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
Decades of market research reveals that the market's biggest winners tend to have an RS Rating north of 80 as they begin their biggest climbs.
ESAB is working on a consolidation with a 135.97 entry. See if the stock can clear the breakout price in heavy volume. Note that it's a third-stage base. Such patterns can work and do sometimes launch nice runs, but, statistically, they're more likely to fail than earlier-stage consolidations.
Earnings growth decreased last quarter from 13% to 4%. But sales moved higher, from -3% to -2%.
The company earns the No. 14 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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