Shares of specialty-glass maker Tecnoglass have soared 1,894% from the Covid market crash in March 2020. Additionally, Tecnoglass stock appears to have just completed a cup-with-handle pattern and could be prepped for takeoff again.
On Thursday, the company reached a noteworthy technical benchmark, with its Relative Strength (RS) Rating jumping into the 80-plus percentile with an upgrade to 83, a rise from 75 the day before.
The upgraded 83 RS Rating shows that Tecnoglass stock topped 83% of all stocks for price appreciation over the past year. Market research shows that the market's biggest winners often have an RS Rating north of 80 as they begin their biggest price moves.
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Tecnoglass Stock Driven By Inventive Glass
Tecnoglass makes specialty glasses for skyscrapers, high-rise hotels and other markets globally, including for Hilton Garden Inn hotels, Via 57 West apartment building in New York City and 545 Wyn real estate agency in Miami.
Among its other key ratings Tecnoglass stock has a near-best 96 Composite Rating out of 99, a 92 Earnings Per Share Rating and a B+ Accumulation/Distribution Rating, showing fairly heavy buying by institutions like mutual funds.
In March 2020, Tecnoglass stock dipped to a 2.15 intraday low as the Covid flash-crash was in progress. On Thursday this week, it traded at 42.87. Tecnoglass is trying to complete a cup with handle with a 46.83 buy point. See if the stock can break out in heavy trade.
The Columbia-based company reported three strong quarters up until last quarter. Earnings last quarter dipped 3% to 98 cents per share in its most recent quarter. That was largely due to a difficult comp as the company reported a 124% leap in earnings the same quarter a year earlier. In the three quarters prior to last quarter, Tecnoglass reported EPS gains of 118%, 104% and 62%.
Growth Despite Difficult Comps
Revenue rose 4% last quarter to $210.7 million, again against difficult comps from the year earlier period. In the three quarters prior to last quarter, sales for the fast-growing, small-cap company rose 60%, 51% and 33%. Look for the company to return to stronger EPS and revenue growth. Its next earnings report is due around Feb. 29.
Tecnoglass stock holds the No. 4 rank among its peers in the Building-Construction Products/Miscellaneous industry group. Simpson Manufacturing and Trex are also among the group's highest-rated stocks.
When searching for the best stocks to buy and watch, relative price strength can be a useful tool.
IBD's unique Relative Strength Rating measures price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
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