In a welcome move, California Resources saw its Relative Strength Rating improve from 67 to 71 on Wednesday.
IBD's unique rating tracks price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 as they launch their biggest price moves. See if California Resources can continue to rebound and clear that threshold.
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California Resources broke out earlier, but is now trading about 4% below the prior 58.44 entry from a consolidation. If a stock you're watching clears a buy point then retreats 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new base and breakout. Also keep in mind that the most recent consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
In terms of top and bottom line numbers, California Resources has posted rising EPS growth in each of the last two reports. Sales gains have also risen over the same time frame.
The company holds the No. 6 rank among its peers in the Oil&Gas-U.S. Exploration & Production industry group. PrimeEnergy Resources, Crescent Energy and Riley Exploration Permn are among the top 5 highly rated stocks within the group.
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