Velocity Financial saw an improvement in its IBD SmartSelect Composite Rating Monday, from 87 to 96.
The new score tells you the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The market's biggest winners often have a 95 or higher grade in the early stages of a new price run, so that's a good starting point when looking for the best stocks to buy and watch.
Velocity Financial broke out earlier, but has fallen back below the prior 20.85 entry from a cup without handle. If a stock you're tracking clears a buy point then falls 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new consolidation and breakout. Understand that it's a thinly traded stock, with average daily dollar volume under $8 million. Less liquid stocks are more prone to large daily or weekly fluctuations since it takes fewer shares traded to move the share price significantly.
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The stock sports a 96 EPS Rating, meaning its recent quarterly and longer-term annual earnings growth is outpacing 96% of all stocks.
Its Accumulation/Distribution Rating of C shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
In Q4, the company reported 30% EPS growth. That means it's now posted two straight quarters of rising EPS gains. Top line growth increased 36%, up from 25% in the prior quarter. That marks one quarter of increasing revenue gains.
Velocity Financial earns the No. 1 rank among its peers in the Finance-Mortgage & Related Services industry group. Rocket Cos. and LendingTree are also among the group's highest-rated stocks.
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