Diversified innovative products maker Dover last quarter saw its best earnings growth in three quarters. Its EPS growth accelerated to 14% despite the uncertain market, up from just 4% the prior quarter. On Monday the Relative Strength (RS) Rating for Dover stock climbed to 76, up a hefty 12 points from 64 last week.
The improved 76 RS Rating shows that Dover stock has outperformed 76% of stocks in the S&P 500 over the past 12 months. It's a good but not yet great rating. Top stocks typically have an RS Rating north of 80 as they launch their biggest climbs. See if Dover can continue to rebound and hit that benchmark.
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Dover Stock's Key 50-Day Line Is Rising
Chicago-based Dover's stock is trading above its 200-day and well above its rising 50-day. Additionally, its relative strength line, which charts a stock's performance vs. the S&P 500, has risen since late October, making Dover a good stock watchlist candidate. However, now is not an ideal time to jump in since it isn't near a proper buy zone, but see if its able to establish and enter a buy zone in heavy trade.
Dover makes products for the energy industry, including devices to deliver cleaner fuels, as well as the imaging industry, automakers, waste handling, aerospace and others. In addition to the 14% rise in earnings to $2.26 per share, Dover recorded a 7% increase in revenue last quarter, to $2.16 billion.
Its stock hit an all-time high at 184.04 in January. It fell in sync with the market correction, to a 114.49 low on Oct. 13. It closed at 141.05 Monday, down 1.7%. It was unchanged in after-hours trading.
Peers In Diversified Products Group
Dover stock holds the No. 19 rank among its peers in the Machinery-General Industrial industry group. That group ranks a strong No. 23 on IBD's list of 197 industry groups. SPX Technologies and Trane Technologies are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
This unique RS Rating measures technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
