In a welcome move S&P Global, majority owner of the Dow Jones Indices including the S&P 500 and Dow Jones Industrial Average, got an upgrade to its Relative Strength Rating. Its RS Rating climbed to 72 Monday, up from 65 the day before.
S&P Global stock trades above all of its key averages, including its 21-day, 50-day and 200-day lines. The upgrade is a welcome one, although it could be better. The best growth stocks often have an RS Rating above 8o. However, this latest upgrade puts the New York-based analytics company closer to topping that benchmark
S&P Global Analysis Includes Tariffs' Effects
S&P Global on its website cites President Donald Trump's tariffs as a major factor shaping markets. "Investors view the lack of concrete details and an unclear policy road map as obstacles to their trading strategies," the report said.
How To Invest In Stocks In Both Bull And Bear Markets
Over 100 years of market history shows that the stocks that go on to make the biggest gains often have an RS Rating over 80 as they launch their largest price moves. See if S&P Global can continue to show renewed price strength and hit that benchmark.
S&P Global broke out earlier, fell back below the prior 514.91 entry from a double bottom base, and has risen above it again. Watch for the stock to form a new base. SPGI stock traded above 515 Monday afternoon, off fractionally for the day.
S&P Global posted 9% earnings growth last quarter, to a healthy $4.37 per share, while sales grew 8% to $3.78 billion. EPS growth ranged from 20% to 29% the prior three quarters. Consensus of analysts is that S&P Global will report a mild 3% hike in EPS this quarter before returning to stronger growth in the back half of the year.
Among its other ratings, the analytics company has an 84 EPS Rating out of 99, putting it in the top 16% of companies for recent and long-term profit growth. It has an 83 Composite Rating and a best-possible A SMR Rating (sales + profit margins + return on equity).
One yellow flag is it D+ Accumulation/Distribution Rating, indicating that funds are selling more of its shares than buying.
Among Top 5 In Its Industry
Watchlist candidate S&P Global earns the No. 4 rank among its peers in the 17-stock Commercial Services-Market Research industry group. Verisk Analytics is the No. 1-ranked stock in the group.
The unique IBD Relative Strength Rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks compares to other publicly traded companies.
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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