Highly-ranked Earthstone Energy was off its game last quarter. The energy company reported a 1% year-over-year drop in earnings to 77 cents per share. However, the prior three quarters its EPS grew 396%, 271% and then 126%. Look for a return to strong growth in the current quarter. On Wednesday, Earthstone stock earned an upgrade to its Relative Strength (RS) Rating, from 67 to 74.
The oil and gas company operates in the prolific Delaware and Midland basin of West Texas. Investors are looking toward the future and its stock is up 30% just since June 1.
The company's revenue growth has tapered in recent quarters too, although it's still robust. Sales rose 111% last quarter to $413.1 million. That followed 427%, 382% and then 244% quarterly sales growth the prior three stanzas. The next quarterly results are expected on or around Aug. 8.
The 74 Relative Strength Rating shows that Earthstone stock has outperformed 74% of all stocks in terms of price performance. It's closing on a milestone. Market research shows that top-performing stocks often have an RS Rating north of 80 in the early stages of their moves. See if Earthstone can close that 6 point gap.
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Among its other key ratings Woodlands, Texas-based Earthstone has an outstanding 93 Earnings Per Share Rating out of 99. The energy company also has a good 89 Composite Rating, putting it in the top 11% of stocks overall. Reflecting strong fundamental, its SMR Rating (sales + profit margins + return on equity) is a best-possible A on an A-to-E scale with A superb and E dismal.
Additionally, Earthstone stock has a C+ Accumulation/Distribution Rating, showing that institutions such as insurance funds and mutual funds are buying slightly more shares than they are selling.
Earthstone stock is working on a consolidation with a 17.54 buy point. See if the stock can break out in volume at least 40% higher than normal. It hit a near-term high 22.25 on June 7, 2022. It dropped to a 10.65 low on Sept. 27 amid the bear market. It has risen about 46% since then.
Earthstone earns the No. 2 rank among its peers in the 55-stock Oil&Gas-U.S. Exploration & Production industry group. Northern Oil & Gas, which operates mainly in the Williston Basin in North Dakota, is No. 1 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.
The exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.
