Talk about a rousing debut! Madison Square Garden Entertainment went public in mid-April and closed April 17 at 32 a share. It slid to 28.09 intraday on May 12 as investors eyed MSGE stock. They started cheering the entertainment venue icon though and Madison Square Garden stock soared to 40.81 on June 2.
It's consolidated from there, perhaps setting up for a fresh run. Its performance has been a crowd-pleaser so far though and on Tuesday it got an upgrade for its stock Relative Strength (RS) Rating, from 90 to a powerful 93. That put it in the top 7% of all stocks for price performance.
Madison Square Garden Stock Tops A Milestone
The upgraded 93 RS Rating shows that Madison Square Garden stock beat 93% of all stocks for price appreciation this past year. Market research shows that the best stocks tend to have an RS Rating north of 80 at the beginning of a new price run.
See How IBD Helps You Make More Money In Stocks
Madison Square Garden also carries an 80 Earnings Per Share Rating, out of 99. And Madison Square Garden stock's 86 Composite Rating show its strength on a group of the most important technical and fundamental metrics. It hasn't been publicly traded long enough to have an Accumulation/Distribution Rating yet. When it does, look for a C or better rating on the A+ to E scale.
While Madison Square Garden stock is not near a proper buy point right now, see if it manages to form and break out from a proper base, perhaps its first post-IPO base. On Tuesday, it closed at 39.64, up 1.6% as it rose above the down day on Wall Street.
Terrific Profit Growth Vs. Weakness Last Year
Madison Square Garden earned 42 cents per share last quarter, reversing from an 8 cents loss the same quarter last year. Ostensibly that is a 625% increase. The prior period it reported a238% increase to 77 cents. Revenue for the small-cap company grew 4% to $201.2 million last quarter, according to MarketSmith.
Madison Square Garden stock earns the No. 8 rank among its peers in the Leisure-Services industry group. Royal Caribbean Group, Carnival and Life Time Group Holdings are among the top 5 highly rated stocks within the group.
When researching the best stocks to buy and watch, one key metric to keep a close on eye on is its price strength relative to other stocks. IBD's unique RS Rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
