Preformed Line Products saw an improvement in its IBD SmartSelect Composite Rating Monday, from 81 to 96.
The new rating is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. Winning stocks often have a 95 or higher grade in the early stages of a new price run, so that's a good item to have on your checklist when looking for the best stocks to buy and watch.
Preformed Line Products is currently forming a consolidation, with a 154.90 buy point. Look for the stock to break out in volume at least 40% higher than normal. Understand that it's a thinly traded stock, with average daily dollar volume under $8 million. Less liquid stocks are more prone to large daily or weekly fluctuations since it takes fewer shares bought or sold to move the share price.
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The stock has an 80 EPS Rating, meaning its recent quarterly and annual earnings growth is outpacing 80% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
In Q4, the company reported 65% EPS growth. That means it's now delivered four straight quarters of rising EPS growth. Revenue growth increased 15%, up from -8% in the prior quarter. The company has now posted increasing growth in each of the last two quarters. The company's next quarterly report is expected on or around Mar. 7.
Preformed Line Products holds the No. 2 rank among its peers in the Telecom-Cable/Satellite Equipment industry group. Frequency Electronics is the top-ranked stock within the group.
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