Banking

AvalonBay Stock Hits 80-Plus Relative Strength Rating Benchmark As Rental Market Gradually Improves From Covid Crash Lows

Things are looking up for apartments owner/operator AvalonBay Communities (AVB). Housing demand is strong and stimulus money and the gradually reopening economy mean more consumers will be looking for apartments. On Wednesday, the Relative Strength (RS) Rating for AvalonBay stock climbed into a new percentile, rising from 79 to 82.




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The 82 RS Rating means that AvalonBay stock has outperformed 82% of stocks over the past year. It’s a significant rating upgrade because market history shows that the best stocks often have an RS Rating north of 80 as they begin their biggest price moves.

AvalonBay Stock Lifted With REIT Group

The real estate investment trust owns and operates 272 apartment communities containing about 79,800 apartments. The real estate market has been showing strength, evidenced by the strong 39 rank of the Finance-Property REIT group of the 197 industry groups IBD tracks.

Among other important ratings, Arlington, Va.-based AvalonBay stock has a 72 Composite Rating, putting it in the top 28% of all stocks overall.

IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

The company reported $1.98 per-share earnings last quarter on $561.7 million revenue. Both EPS and revenue were down from a year ago amid government-mandated rent freezes to help consumers as the economy recovers. Still, that showed improvement for both earnings per share and sales from prior quarters. The company is expected to release its next quarterly numbers on or around Oct. 28.

Peers In Finance-Property REITs Group

Power REIT (PW) and Weyerhaeuser (WY) are among the Finance-Property REITs industry group’s highest-rated stocks.


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AvalonBay Communities is now considered extended and out of buy range after clearing a 196.54 buy point in a first-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

IBD’s proprietary Relative Strength Rating identifies technical performance by showing how a stock’s price action over the last 52 weeks compares to that of the other stocks in our database.

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