Homebuilder Century Communities is one of those rare companies that have posted double-digit profit growth every quarter over the past year. Another rarity: It's trading above both its 50-day and 200-day moving averages. On Wednesday, the Relative Strength (RS) Rating for Century Communities stock moved up into a new percentile, as it climbed from 70 to 77.
Century Communities builds single-family detached homes in metropolitan markets. The 77 RS Rating puts the Denver area-based company in the top 25% of companies for stock price performance over the past year. But that's a deceptively modest rating.
Century Communities Stock's Other Ratings Shine
Century Communities stock boasts a 90 Composite Rating out of a best-possible 99. Even better, its 97 Earnings Per Share Rating puts it in the top 3% of companies for recent quarters and years profit growth. And its solid B Accumulation/Distribution Rating, on an A+ to E scale with A+ superb and E dismal, shows fairly strong buying of its stock by institutional investors such as ETFs and mutual funds.
Regarding the 77 RS Rating, market research shows that the best-performing stocks typically have an 80 or higher RS Rating in the early stages of their moves. Look for Century Communities to continue to rebound and clear that threshold.
See How IBD Helps You Make More Money In Stocks
Century Communities stock could be working up the right side of a cup base. It topped its 50-day average in early November and its 200-day at the beginning of December, and continued to rise above the converging lines. Now is not an ideal time to jump in since it isn't near a proper buy zone, but see if the stock is able to form a base and break out.
Profit, Sales Rose The Past Year
Earnings last quarter rose 22% to $4.44 per share. The prior three stanzas its EPS grew 74%, 40% and 38%. Also last quarter its sales grew 19% to $1.14 billion, up from 12% growth the prior quarter.
Century Communities stock earns the No. 12 rank among its peers in the Building-Residential/Commercial industry group. PulteGroup and Taylor Morrison Home are among the group's highest-rated stocks.
When you're researching the best stocks to buy and watch, keep a close eye on relative price strength.
IBD's unique RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matched up against all other stocks.
