Science Applications hit a fresh all-time high last month. And on Wednesday, the Relative Strength (RS) Rating for Science Applications stock rose from 70 to 73. Not bad for government work.
Reston, Va.-based Science Applications, which provides technical services and information technology to the federal government, saw its stock pop to a 123.53 high on Aug. 4. It's consolidated since then in sync with the overall market, although it was on track for a fourth straight day of higher closes on Wednesday afternoon.
The 73 RS Rating moves it within 7 points of a significant benchmark. Stocks that go on to make the biggest gains typically have an RS Rating north of 80 as they begin their largest runs. See if Science Applications stock can continue to rebound and hit that benchmark.
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Science Applications Stock Rises Amid Higher Guidance
Science Applications provides a variety of tech and information services to the government. For example, on Sept. 11 the company announced a $574 million contract to help modernize the U.S. Space Force (USSF) ground based radar facilities.
"SAIC's continued work with Space Force is a true testament to the valuable support we bring to the agency on its modernization journey," said Michael LaRouche, president, National Security and Space at SAIC, in the news release.
Last quarter, SAIC's earnings grew 17% to $2.05 per share. The prior three stanzas its EPS grew from 3% to 36%, then 14%. On Sept. 7, the company raised its full-year EPS guidance to $7.20 to $7.40 per diluted share, up from $7 to $7.20 earlier.
Its revenue growth hasn't been as strong over the last four quarters: 1%, 10%, 2% and then a 3% year-over-year drop last quarter. Still, on Sept. 7 SAIC also raised its revenue outlook for the year, to $7.2 billion to $7.25 billion, up from $7.125 billion to $7.225 billion.
Working On A Flat Base
Science Applications stock is trying to complete a flat base with a 123.53 buy point. See if the stock can break out in heavy trade. It traded down fractionally Wednesday afternoon just before the closing bell.
Science Applications stock holds the No. 11 rank among its peers in the Commercial Services-Consulting industry group. ICF International and Booz Allen Hamilton are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength Rating identifies share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.
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