On Wednesday, after a year of remarkable sales and profit growth that demonstrate its market leadership, Arch Resources stock rose into an elite group. Arch stock's Relative Strength (RS) Rating rose to 82, up from 78, putting it among the best stocks to watch. Arch is slated to report fourth quarter financial results Thursday before the market opens. It's moving in the right direction although it doesn't yet show a specific buy point.
The upward revised 82 RS Rating places Arch Resources among the top 18% of all stocks for stock price performance. Market research shows that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they begin their biggest runs.
Arch Resources EPS Growth Ranged 76% to 999%-Plus
Arch Resources posted 76% earnings growth on a year-over-year basis in its most recent report, to a hefty $8.68 per share. Sales grew 45% to $863.8 million. The prior three quarters Arch's EPS grew 331%, and then more than 999% the next two quarters. Similarly, sales grew at a triple-digit pace the prior three quarters.
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Among its other ratings Arch Resources has a 92 Composite Rating, out of 99. Also a 79 Earnings Per Share Rating and a B Accumulation/Distribution Rating on an A+ to E scale. The B A/D Rating shows ETFs, mutual funds and other institutional investors are fairly heavy buyers.
Arch Stock Rising, Not At Buy Point Yet
Arch Resources is building a consolidation with a 166.33 buy point. See if it can clear the breakout price in volume at least 40% above average. Keep in mind that it's a later-stage consolidation. Those can succeed and bring big returns but they entail more risk than early, first and second stage, bases. Wednesday afternoon, Arch Resources stock rose more than 1%.
The company holds the No. 2 rank among its peers in the Energy-Coal industry group. Warrior Met Coal and Natural Resource Partners are also among the group's highest-rated stocks.
IBD's unique Relative Strength Rating measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
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