Cleaner nuclear energy is again a growing industry. Artificial intelligence data centers use massive amounts of power to run their calculations. BWX Technologies makes power generation systems and nuclear components for the U.S. government, industries and utilities and is among those gaining.
BWX supplies nuclear power for NASA projects and Navy aircraft carriers and submarines including Ohio, Virginia, Sea Wolf and Los Angeles class subs. It also supplies nuclear plants that provide energy to homes and businesses, and provides materials to medical facilities that use nuclear technology, among others.
Lynchburg, Va.-based BWX has a strong moat around its products and technology. It says on its website it's "the only fully integrated nuclear supplier in North America capable of taking a reactor development project from pre-conceptual design through manufacturing."
BWX Hits All-Time High, Gets Rating Bump Up
On Thursday, BWX stock hit an important milestone, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 93 out of 99. That's up from 90 the day before. The 93 RS Rating shows that BWX is in the top 7% of stocks for price performance this past year.
It's a notable upgrade because the market's biggest winners often have an RS Rating of over 80 at the beginning of a new climb and BWX is way ahead of that.
Among its other key ratings BWX has an 89 EPS Rating and a 93 Composite Rating, showing overall strength. It also boasts an outstanding B+ Accumulation/Distribution Rating on an A+ to E scale with A+ superb and E wretched. The B+ rating indicates mutual funds, ETFs, insurance funds and the like are fairly heavy buyers.
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Last quarter BWX reported a 24% hike in EPS to 83 cents on a 14% rise in revenue to $672 million. The prior three stanzas its EPS rose 9%, 9% and 26%. During that period its sales grew 16%, 6% and 11%.
All-Time High Close Yesterday, Higher Yet Today
BWX Technologies stock broke out on Sept. 23 after clearing a 106.42 buy point in a second-stage cup with handle. From there it started climbing again. It rose 4% to an all-time high close on Wednesday. Thursday afternoon it traded as high as 136.31, an intraday high, before pulling back to trade at just over 129, giving back part of Wednesday's gain.
See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Energy company BWX earns the No. 6 rank among its peers in the 46-stock Electrical Power/Equipment industry group. American Superconductor, Vertiv Holdings and Powell Industries are among the top 5 highly rated stocks in the group.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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