Capital Product Partners saw its IBD SmartSelect Composite Rating rise to 96 Tuesday, up from 94 the day before.
The upgrade means the stock is now outperforming 96% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major moves.
Capital Product Partners is currently forming a consolidation, with an 18.85 entry. Look for the stock to break out in heavy trade at least 40% higher than normal. Be aware that it is a very thinly traded stock, with average daily dollar volume under $1 million.
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One weak spot is the company's 62 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 A shows heavy buying by institutional investors over the last 13 weeks.
In Q1, the company reported -35% EPS growth. Top line growth increased 29%, up from 20% in the prior report. That marks one quarter of accelerating revenue increases.
Capital Product Partners holds the No. 8 rank among its peers in the Transportation-Ship industry group. Costamare, Seanergy Maritime Hldgs and Global Ship Lease Cl A are among the top 5 highly-rated stocks within the group.
