One important metric to look for in a stock to buy or watch is an 80 or higher Relative Strength Rating. B. Riley Financial just hit that mark, with a jump from 79 to 85 Tuesday. The 85 RS Rating means B. Riley stock topped 85% of all stocks for price appreciation over the past year.
B. Riley Rating Jumps As Earnings Soar
Top-performing stocks tend to have an 80 or higher RS Rating in the early stages of their moves. B. Riley stock just joined that exclusive club. The rating bump comes even though the stock has been dropping recently in sync with market consolidation.
Investment banker/broker B. Riley Financial has come alive this year. In the March-ended quarter Los Angeles-based B. Riley reported 51 cents earnings per share, a 113% jump from 24 cents the same quarter a year earlier. First quarter revenue shot up 75%.
On Aug. 9, the company reported $1.55 second quarter EPS, reversing sharply from a $4.36 loss a year earlier. Revenue soared 191% to $406.3 million. Look for the next report on or around Oct. 26.
Among its other important ratings B. Riley stock has an 82 Composite Rating, out of 99. Its EPS Rating, which gauges recent and long-term profit growth, is 81. The finance/investment bankers group as a whole has an A- RS Rating. A yellow flag is its D- Accumulation/Distribution Rating. That shows that large funds are selling more shares than buying.
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On A Roller-Coaster Ride
B. Riley Financial is not currently showing a potential entry point. Its stock fell to a 2023 low of 24.95 on April 10. It reversed and shot up to 60.72 in just three months. It's given back about a third of its value since then and closed at 40.51 Tuesday. See if the stock goes on to form a sound pattern that could ignite a new run.
B. Riley stock earns the No. 17 rank among its peers in the 33-stock Finance-Investment Banking/Brokers industry group. Futu Holdings and LPL Financial are 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.
This proprietary Relative Strength Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
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