Cereals giant Post saw its stock jump 7.7% on Friday on outstanding earnings. It's building on that this week, as its stock rose another 2.5% Monday afternoon. Also on Monday, the Relative Strength (RS) Rating for Post stock got an upgrade from 63 to 79 — just below a major milestone.
Post is putting up some amazing numbers, with earnings per share rising at a rate ranging as high as 358% over the past year. The upgraded 79 RS Rating shows that Post tops 79% of all stocks for price performance over the past 52 weeks.
Post Stock Near Entry To Elite Stock Group
The rating upgrade is notable because Post stock is now just one click below an 80 rating. And market research shows that the market's biggest winners typically have an 80 or better RS Rating as they launch their largest climbs.
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Post sells a variety of foods under various brands. Among them is Post Consumer Brands, which includes various cereals, peanut butter, pet foods and other products. It also sells Weetabix breakfast products, frozen foods under the Bob Evans Farms label and others.
Watchlist candidate Post stock is still inside a buy zone after clearing a 98.84 entry in a consolidation. On Jan. 31 Post closed at 92.87. Monday afternoon, it traded at 103.70, up 2.3% for the day. Post slid to a 78.84 low on Oct. 12 then turned up. It's risen about 31% in the last four months.
Among its other key ratings St. Louis, Mo.-based Post has an 88 Composite Rating of a best-possible 99. It has a mild 78 Earnings Per Share Rating. Its bullish B+ Accumulation/Distribution Rating, on an A+ to E scale, shows that institutional investors such as pension funds, mutual funds, hedge funds and the like are avid buyers of its stock.
Strongest Revenue Growth In A Year
Regarding fundamentals, Post's earnings growth dropped in the most recent report from 92% the prior quarter to 56%, or $1.69 per share. But revenue growth moved higher, from 23% to 26%, to $1.97 billion. That was its strongest sales growth in at least two years.
Post stock earns the No. 2 rank among its peers in the Food-Packaged industry group. Small-cap Sovos Brands is No. 1 and potato giant Lamb Weston is No. 3 among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength. The IBD proprietary Relative Strength Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
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