Stride continues to prove that online educators can excel. Sales and profit growth have accelerated the past two quarters. And on Thursday Stride stock reached an important milestone, seeing its Relative Strength (RS) Rating leap into the 80-plus percentile with an improvement to 87, up 17 points from 70 the day before. Additionally, Stride stock gapped up 13.1% Wednesday on a strong earnings report.
Stride Stock Joins 80-Plus RS Rating Club
The upgraded 87 RS Rating means that the Washington, D.C. area-based company's stock is outperforming 87% of all stocks for price performance. It's kind of a big deal because market research shows that the market's biggest winners tend to have an 80 or better RS Rating as they launch their biggest runs.
Stride on Tuesday posted 27% earnings growth for the March 31-ended quarter, to $1.30 per share, up from 19% growth the prior quarter. Sales grew 12% to $470.3 million, matching the 12% growth the prior quarter.
Among its other key ratings, Stride stock boasts a 95 Composite Rating, out of a best-possible 99. Its profits gauge, the Earnings Per Share Rating is even stronger, at 96. Additionally, its B- Accumulation/Distribution Rating means that big money investors like ETFs and mutual funds are buying more shares than selling. And the number of top-rated mutual funds holding Stride stock is increasing. It rose from 454 in September to 461 in March.
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Stride Stock Up Nearly 60% From Early 2022
Stride stock climbed about 59% from a January 2022 low of 26.59 to around 42.25 Thursday afternoon. It broke out earlier, but has fallen back below the prior 44.37 entry from a consolidation. It's scrambling to get above a buy point again.
Stride stock earns the No. 2 rank among its peers in the Consumer Services-Education industry group. China's New Oriental Education and small-cap, Florida-based Laureate Education are also among the group's highest-rated stocks. The group itself ranks a decent No. 46 on IBD's list of 197 industries.
IBD's proprietary Relative Strength Rating tracks market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matches up against that of all other stocks.
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