On Monday, timberlands holding company PotlatchDeltic (PCH) reported outstanding earnings results. And on Tuesday its stock got an upgrade for its Relative Strength (RS) Rating to 72, up from 68 the day before. Its other technical ratings are significantly higher.
The 72 Relative Strength Rating means PotlatchDeltic has outperformed 72% of all stocks over the past year. The market’s biggest winners typically have an RS Rating of over 80 as they launch their largest climbs. See if Potlatch can continue to show renewed price strength and clear that threshold.
Potlatch Cultivates Forest Lands
Spokane, Wash.-based Potlatch is a real estate investment trust that holds 1.8 million acres of timberland in various states.
Its EPS Rating of 87, out of a best-possible 99, reflects strong profit growth in recent quarters and long-term. Its Composite Rating, an amalgam of five key ratings, is even higher at 96. The best growth stocks have a Composite Rating of 90 or better.
Its Accumulation/Distribution Rating, one of the five ratings in the Composite, is B- on an A+ to E scale. The B- rating indicates funds and other large institutions are buying more shares than selling.
Taking a look at top and bottom line numbers, the company has posted rising EPS growth over the last three quarters. Sales growth has also moved higher during the same period.
Last quarter, Potlatch’s earnings popped 782%, to $1.94 per share. Revenue for the REIT was up 70% year over year, to $354.2 million.
“We expect housing fundamentals and lumber demand will remain strong,” CEO Eric Cremers said in the earnings news release. “Our strong liquidity and disciplined capital allocation strategy positions us to continue increasing shareholder value.”
The prior quarter its EPS grew 771% on 66% higher revenue.
Other Top-Rated REITs
Watchlist candidate Potlatch has risen more than 5% past a 48.47 entry in a first-stage flat base, meaning it’s now out of a proper buy range. Look for the stock to create a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
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 measures share 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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