One important metric to look for in a stock is an 80 or higher Relative Strength Rating. ESAB just hit that mark, with a jump from 75 to 88 Thursday.
This proprietary rating identifies market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against the rest of the market.
Decades of market research shows that the top-performing stocks typically have an RS Rating north of 80 in the early stages of their moves.
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ESAB is working on a consolidation with a 135.97 entry. See if the stock can break out in heavy volume. Note that it's a third-stage base. Such later-stage patterns involve more risk and are more likely to fail than first- or second-stage consolidations.
ESAB posted 13% earnings growth last quarter. Sales rose -3%. Keep an eye out for the company's next round of numbers on or around May 1.
The company holds the No. 8 rank among its peers in the Machinery-General Industrial industry group. ESCO Technologies, DXP Enterprises and Energy Recovery are among the top 5 highly rated stocks within the group.
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.
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