Low-fare carrier Allegiant Travel got a Relative Strength (RS) Rating upgrade from 80 to 83 Wednesday. The carrier came roaring out of the bear market last year, posting 169% earnings growth on 23% higher revenue in the December, 2022-ended quarter. From that strong takeoff, Allegiant stock continued to gain altitude. On Aug. 2, Allegiant reported a massive 1,713% surge in earnings to $4.35 per share for its second quarter.
Allegiant Stock In Top 11%
History reveals that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating in the early stages of their moves. Las Vegas-based Allegiant's upgraded 83 RS Rating puts Allegiant stock in that exclusive group. Among its other ratings Allegiant has a strong 89 Composite Rating, putting it in the top 11% of companies overall. IBD's Composite Rating is based on five other critical fundamental and technical metrics. Additionally, it has an 83 Earnings Per Share Rating.
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Allegiant stock shot up 3.4% on Aug. 2 after it reported earnings. Meanwhile, on March 24 Allegiant stock hit a near-term low at 78.36. From there it rose to a 52-week high 130.93 on July 13. It's consolidated amid the current market correction, and Wednesday Allegiant stock fell 1.6% to 108.33.
While Allegiant Travel is not near a proper buying range right now, see if it goes on to form and break out from a proper base.
No. 4 In Airlines Group
Allegiant stock holds the No. 4 rank among its peers in the 20-stock Transportation-Airline industry group. Delta Air Lines and United Airlines are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's proprietary rating tracks price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
