Avantor Stock Showing Improved Relative Strength After 350%-Plus Run In Little More Than A Year

A key rating for Avantor, a Covid recovery play, rose to a new level Thursday. The Relative Strength (RS) Rating for Avantor (AVTR) climbed to 74, up from 69 the day before. Avantor makes production and research instruments for a variety of industries including biopharma, health care and education. Its stock has soared about 370% since March 2020.


The 74 RS Rating means Avantor has outperformed 74% of all stocks over the past year. The biggest stock winners typically have an RS Rating north of 80 as they launch their runs. See if Avantor can continue to rebound and clear that threshold.

Other Avantor Ratings Stand Out

Although its stock is still working its way up the ladder, other key metrics are stronger. Its EPS Rating, for example, is a near-best 97 out of 99. Similarly, its Composite Rating of 95 is outstanding.

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.

In terms of fundamentals, Avantor posted 106% EPS growth last quarter, to 35 cents a share.  In the three preceding quarters its EPS grew 19%, 60% and 53%. Sales in its most recent quarter climbed 18% to $1.79 billion, matching its growth rate the prior quarter.

CEO Michael Stubblefield, in the April 29 Q1 earnings news release said, “The robust growth in our base business and strong margin expansion, earnings growth and continued deleveraging provides a terrific start to 2021.”

Avantor holds the No. 3 rank among its peers in the Medical-Research Equipment/Services industry group. Iqvia (IQV) is No. 1 and PRA Health Sciences (PRAH) is No. 2 in the group.

Avantor closed at 31.16 Thursday, up 0.5%. Last year it bottomed at 6.66 a share in sync with the coronavirus market bottom. IBD 50 stock and recent Stock of the Day Iqvia rose 1.7% to 236.74. PRA Health Sciences was up 1.1% at 174.16.

Looking For The Best Stocks To Buy And Watch? Start Here

The IBD 50 stock and watchlist candidate has risen in stairstep fashion since November but is not currently offering a proper buying opportunity. See if the stock goes on to form a chart pattern that could spark a new run.

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

This exclusive rating from Investor’s Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock’s price behavior over the last 52 weeks compares to all the other stocks in our database.


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