With housing in short supply and builders scrambling to boost output, suppliers like TopBuild (BLD) are getting a lift. On Monday. TopBuild stock’s Relative Strength (RS) Rating climbed to 72, up from 67. That metric only tells part of the story though as TopBuild puts up other, stronger ratings and may be poised to break out.
The 72 RS Rating means that TopBuild stock is outperforming 72% of all stocks. The best stocks often have an 80 or higher RS Rating as they begin their largest climbs. See if TopBuild can continue to rebound and clear that threshold. The insulation installation services firm operates nationwide via 200 branches.
Near-Perfect Composite For TopBuild Stock
Among other key ratings, TopBuild stock has a near-best 98 Composite Rating on a 1 to 99 scale with 99 tops.
The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics. The best growth stocks have a Composite Rating of 90 or better.
Additionally, the Daytona Beach, Fla.-based company carries an excellent 98 EPS Rating, reflecting strong recent and long-term profit growth.
One question mark in its resume is its weak Accumulation/Distribution Rating, a gauge of buying and selling by institutional investors. TopBuild’s D+ A/D Rating on an A+ to E scale means it needs to do more work to convince big money investors that it can sustain recent momentum.
In terms of top and bottom line numbers, the company has posted four quarters of increasing earnings growth. Revenue growth has also moved higher during the same period. Last quarter, TopBuild reported a 64% spike in EPS to $2.76 on a 29% increase in revenue to $834.3 million.
TopBuild stock holds the No. 5 rank among its peers in the Building-Construction Products/Miscellaneous industry group. Builders FirstSource (BLDR) and Tecnoglass (TGLS) are also among the group’s highest-rated stocks.
TopBuild is building a cup with handle with a 229.99 entry. See if it can break out in volume at least 40% higher than normal.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
This unique rating measures technical performance by showing how a stock’s price action over the last 52 weeks measures up against that of the other stocks in the IBD database.
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