Bitcoin and other cryptocurrencies have rallied from a slump earlier this year. The rally has lifted shares of digital coin miner Marathon Digital. On Tuesday Marathon stock earned an upgrade to its Relative Strength (RS) Rating, from 84 to an outstanding 92 out of a best-possible 99.
Bitcoin traded as low as 26,750 all the way to early October. It shot up to above 3,700 Tuesday, and it's up more than 38% in the last six months. Marathon Digital is in a sweet spot as one of the biggest holders of bitcoin in the U.S.
Marathon Stock On Track For 5th Higher Close In Row
On Nov. 8 watchlist candidate Marathon reported third quarter results. The Fort Lauderdale, Fla.-based company reported a dramatic reversal from a 62 cents per share loss in Q3 2022 to 35 cents EPS this year, ostensibly 156% growth. Revenue grew an astounding 671% to $97.9 million vs. $12.7 million last year.
Marathon stock dropped to 3.11 a share on Dec. 28. It's risen about 230% since then and traded around 10.30 Tuesday afternoon, down about 3% for the day but up 3% for the week. One driver of its stock rise is that its sales and profit growth have both improved over the past three quarters. The stock crossed above its 50-day line last week and rose slightly above its 200-day Tuesday. Meanwhile, it was on track for a fifth higher weekly close in a row.
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In terms of technicals, the upgraded 92 RS Rating shows that Marathon stock tops 92% of all stocks, regardless of industry, for price performance over the past year. It's notable because research shows that stocks that go on to make the biggest gains often have an 80 or better RS Rating at the beginning of a new price run.
Among other key ratings Marathon stock has an 82 Composite Rating, a 76 Earnings Per Share Rating and an excellent A Accumulation/Distribution Rating on an A+ to E scale with A+ tops. The Accumulation/Distribution Rating of A shows that big money investors like mutual funds and ETFs are heavy buyers of its stock.
Marathon A Growing Favorite Among Funds
Additionally, the number of funds that own Marathon stock rose from 294 in the March-ended quarter to 306 in September.
Marathon stock earns the No. 39 rank among its peers in the 116-stock Finance-Investment Management industry group. Blackstone, Blue Owl Capital and Golub Capital BDC are among the top 5 highly rated stocks in the group.
When researching the best stocks to buy and watch, relative price strength is a good indicator to check.
The exclusive Relative Strength Rating from Investor's Business Daily measures share price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.
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