- Perma-Pipe International (PPIH) shows strong technical momentum, hitting a new all-time high on Aug. 26.
- PPIH maintains a Trend Seeker “Buy” signal with 208% annual gains.
- The stock trades above key moving averages and is supported by a 100% “Buy” opinion from Barchart but remains under Wall Street’s radar.
- Despite its momentum, PPIH is volatile and speculative. I recommend strict risk management and stop-loss strategies for any potential investment.
Today’s Featured Stock
Valued at $255 million, Perma-Pipe International (PPIH) is a manufacturer of pre-insulated piping systems for District Heating and Cooling in North America. The company offers process, secondary contained, leak detection, steam and condensate piping systems.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. PPIH checks those boxes. Since the Trend Seeker signaled a buy on Aug. 4, the stock gained 29.82%.
PPIH Price vs. Daily Moving Averages:
Barchart Technical Indicators for Perma-Pipe International
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Perma-Pipe shares hit a new all-time high on Aug. 26, touching $32.90 in intraday trading.
- Perma-Pipe has a Weighted Alpha of +236.77.
- PPIH has an 100% “Buy” opinion from Barchart.
- The stock gained 208.25% over the past year.
- PPIH has its Trend Seeker “Buy” signal intact.
- Perma-Pipe is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 11 new highs and gained 34.62% in the last month.
- Relative Strength Index (RSI) is at 74.79%.
- There’s a technical support level around $30.46.
Don’t Forget the Fundamentals
- $255 million market capitalization.
- 19.09x trailing price-earnings ratio.
- Wall Street has not discovered this stock yet, so analysts haven’t made any revenue or earnings projections.
Analyst and Investor Sentiment on Perma-Pipe International
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts haven't discovered PPIH, but CFRA’s MarketScope Advisor has a “Strong Buy” rating.
- Value Line gives the stock an “Average” rating.
- Morningstar thinks the stock is 23% overvalued with a fair value of $25.94.
- Only 975 investors monitor the stock on Seeking Alpha, which rates the stock a “Buy.”
The Bottom Line on Perma-Pipe
Perma-Pipe currently has momentum and is hitting new highs. Perma-Pipe’s specialty pipes and leak detection systems serve critical roles in energy, oil and gas, and increasingly, data center markets.
I caution that PPIH is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
