Automotive services company Driven Brands is racing ahead of the pack as the recent IPO company's sales and profits continue to climb. When looking for the best stocks to buy and watch, focus on those with rising relative price strength.
Driven stock, which had its Relative Strength (RS) Rating upgraded from 79 to 84 Wednesday, fits that bill. The 84 RS Rating means Driven stock has outperformed 84% of all stocks over the past 12 months. Market research shows that the best stocks to buy and watch often have an RS Rating north of 80 in the early stages of their moves.
Driven Brands Stock In Top 4% Overall
The Charlotte, N.C.-based auto services company grew out of the merger of Meineke Car Care Centers and Maaco Collision Repair & Auto Painting. The company went public in Jan. 2021. It has a bevy of brands under its umbrella in addition to Meineke and Maaco, including Take 5 Oil Change and Econo Lube.
Among its other key ratings Driven Brands boasts a 97 Earnings Per Share Rating, out of 99. Driven stock also carries a 96 Composite Rating. The 96 rating puts it in the top 4% of companies for a group of five other key metrics. The Composite Rating is a group of five other key metrics. Additionally, Driven stock has a B- Accumulation/Distribution Rating, meaning institutional investors are buying more of its shares than selling.
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Driven Builds Toward Breakout
Meanwhile, Driven stock, which is on the IPO Leaders screen, is building a consolidation with a 35.55 buy point. See if the stock can clear the breakout price in volume at least 40% higher than normal. Shortly after it went public in Jan. 2021, Driven traded for as low as 16.40. Despite taking a hit, like most stocks, during the 2022 market plunge, it's motored about 88% higher and traded above 30 Wednesday afternoon. It's also above its 50-day and 200-day lines.
Earnings growth rose in the company's latest report from 23% to 39%, or 25 cents per share. The prior three quarters its EPS grew 47%, 40% and then 23%. Revenue has also grown at a strong pace this past year. It surged 38% to $539.7 million last quarter. The company is expected to report its latest earnings and sales numbers on or around May 3.
Additionally, Driven Stock holds the No. 2 rank among its peers in the Retail/Wholesale-Auto Parts industry group. Small-cap, Texas-based truck center operator Rush Enterprises is No. 1 in the group. Auto dealership and repair shops operator Group 1 Automotive is No. 3.
IBD's proprietary Relative Strength Rating identifies share price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
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