The IBD SmartSelect Composite Rating for National Presto Inds increased from 94 to 96 Tuesday.
Looking For The Best Stocks To Buy And Watch? Start Here
The new rating is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The top-performing stocks tend to have a 95 or better grade as they begin to launch a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
National Presto Inds broke out earlier, but has fallen back below the prior 86.08 entry from a cup without handle. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to form. Understand that it is a thinly traded stock, with average daily dollar volume under $8 million. Such stocks may show wider daily or weekly fluctuations than stocks with greater liquidity.
One weak spot is the company's 71 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of D shows moderate selling by institutional investors over the last 13 weeks. Look for the rating to improve to at least a C or better.
In Q4, the company reported 57% EPS growth. That means it's now generated three straight quarters of rising EPS growth. Sales growth rose 37%, up from 10% in the prior report. That marks four quarters of increasing revenue gains. The company's next quarterly report is expected on or around Feb. 14.
National Presto Inds earns the No. 13 rank among its peers in the Aerospace/Defense industry group. Elbit Systems, Espey Mfg & Elec and Heico 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.
