Axos Financial is today's selection for IBD 50 Stocks To Watch as the company's shares are breaking out of a cup base with a buy point of 60. IBD MarketSurge's chart tools show that the financial company's relative strength line, which measures the stock's performance vs. the S&P 500, is at a new high.
The company's sales and earnings have been on a steady growth path over the past eight quarters. Sales growth has ranged between 18% and 55% while earnings growth has been between 15% and 44%.
Sales grew 27% to $294.8 million during the fiscal third quarter ended March 31, while earnings grew 44% to $1.94 per share. Shares gapped up after the April 30 report, which started a four-day rally toward the buy point. Net income increased 38.7% to $110.7 million.
High Ratings For Financial Company
Axos stock climbed 0.7% Thursday afternoon, just above the entry point of 60. The stock has a Composite Rating of 98 out of 99 and an EPS Rating of 97. The Relative Strength Rating of 92 is also a show of strength.
Mutual funds have been net buyers of the stock in recent weeks, giving it an Accumulation/Distribution Rating of B. Mutual funds own 62% of outstanding shares. More funds have bought the stock in the recent five quarters.
The stock is a holding in the Russell 2000 Index, the S&P Small Cap 600 Index, the KBW Nasdaq Financial Technology Index, and the Travillian Tech-Forward Bank Index.
Axos Financial is a holding company for Axos Bank, which provides consumer and business banking. The financial company also owns Axos Clearing and Axos Invest, which provide securities clearance services for broker dealers and registered investment advisors.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
