Small-cap insurance company Assured Guaranty's stock has formed a long, highly symmetrical cup pattern. The nearly complete pattern is a bullish indicator. If it continues the direction it's been going, the company could break out soon. On Tuesday, Assured Guaranty stock's Relative Strength (RS) Rating climbed to an excellent 93, up from 90 a day earlier.
Research shows that top-performing stocks typically have an RS Rating north of 80 as they begin their largest price moves. The 93 RS Rating shows that Bermuda-based Assured Guaranty's price performance over the past year tops that of 93% of all stocks, regardless of industry group.
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Assured Guaranty Stock Just 'That Much' Below Buy Point
Assured Guaranty is trying to complete a cup without handle base with a 65.78 entry. See if the stock can break out in trade at least 40% higher than normal. Assured Guaranty stock closed 2.4% higher Tuesday, at 65.54, just a sliver below its buy point, according to the Wall Street Journal.
Among other key ratings, Assured Guaranty carries an 81 Composite Rating, out of 99. It's in the Insurance group, which has a strong B+ Group RS Rating, on an A-to-E scale. And it sports a bullish B Accumulation/Distribution Rating. A yellow flag is its middling 63 Earnings Per Share Rating, mainly due to weak profit growth earlier.
While revenue last quarter fell 54% vs. the same quarter a year ago, to $41 million, its earnings soared 369% to $2.11 per share.
Peers In Highly Rated Insurance Group
The company earns the No. 11 rank among its peers. Kinsale Capital, RLI and W.R. Berkley are among the top 5 highly rated stocks in the Insurance-Property/Casualty/Title industry group.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength. IBD's proprietary Relative Strength Rating measures share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
