Last week the Fed raised its benchmark interest rate by a quarter point, the first interest rate increase since 2018. The Street expects as many as seven rate hikes this year as the Fed fights inflation. Banks including Stifel thrive on higher interest rates and should do well in the new regulatory climate. On Tuesday, Stifel Financial's Relative Strength (RS) Rating climbed to 81, up from 78 the day before. Stifel stock shot up 3.3% early Tuesday to 71.73, rising above its 50-day line. It was on track for a seventh straight daily gain.
The new 81 RS Rating means Stifel stock has outperformed 81% of all stocks over the past year. It's a significant rating bump because market research shows that the best stocks tend to have an 80 or better RS Rating in the early stages of their moves.
Among other key ratings, Stifel has a best possible 99 EPS Rating amid continued robust profit growth. Its 90 Composite Rating puts it in the top 10% on a group of key metrics. One yellow flag is its D+ Accumulation/Distribution Rating, which indicates institutional investors are still lukewarm on its stock after the big drop during the early 2022 market consolidation.
Stifel Revenue Higher Every Year For 26 Years
Stifel provides brokerage, investment research and banking services. The St. Louis-based financial company has recorded strong quarterly double-digit sales and profit gains for at least a year. It reported a 34% year-over-year fourth quarter earnings jump to $2.23 per share. Sales rose 22% to $1.31 billion. For the year, the company said it was its 26th year in a row of higher annual revenue.
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Stifel stock dropped to an intraday low of 60.35 on March 8 and has rebounded strongly, rising 19% in the past two weeks. It rose in stairstep fashion over the past year, but it's unclear what pattern it's forming in the wake of recent market consolidation. See if the stock goes on to establish and enter a buy zone in heavy trade.
Stifel Financial earns the No. 4 rank among its peers in the Finance-Investment Banking/Brokers industry group. LPL Financial and Freedom Holding are also among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique Relative Strength Rating identifies share price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks stacks up against all the other stocks in our database.
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