Energy stocks like Cactus have taken a wild ride this year, soaring after Russia invaded Ukraine, then falling in the last couple of months as oil and gas companies ramp up production. Houston-based Cactus went along for the ride, posting quarterly sales increases ranging from 56% to 93% over the past year. On Wednesday, Cactus stock's Relative Strength (RS) Rating climbed from 78 the day before to 82.
Cactus makes and sells wellheads and pressure control equipment to oil and gas companies.
The new 82 RS Rating is an indication that Cactus stock still has some gas in its tank. Market research shows that the market's biggest winners tend to have an RS Rating of at least 80 in the early stages of their moves.
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Cactus Stock Among Top 12% Overall
Among its other key ratings small-cap Cactus has an 82 EPS Rating, of 99. Cactus stock carries an 88 Composite Rating, putting it in the top 12% of stocks on a group of five other key ratings. It has an outstanding A SMR Rating (Sales growth+profit Margins+Return on equity). One yellow flag — it has an E Accumulation/Distribution Rating, which shows that institutional investors aren't on board yet.
Cactus stock hit an all-time high 64.18 on March 11 then consolidated. It fell to 34.85 on July 21 then began rising. Wednesday afternoon Cactus traded around 47, up about 5% for the day. Look for Cactus to form a fresh base such as a cup with handle or three weeks tight.
Earnings shot up 175% last quarter to 44 cents per share. It was its third quarter in a row of triple-digit sales growth. Revenue climbed 56% to $170 million. The prior three stanzas its revenue grew 93%, 91% and 73%.
Peers In Oil & Gas Group
Cactus stock holds the No. 6 rank among its peers in the Oil & Gas-Machinery/Equipment industry group. DistributionNow and Forum Energy Technology are also 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.
IBD's unique RS Rating measures market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
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