Continuing a string of quarters where it posted triple-digit profit and sales growth, Smith and Wesson last quarter reported a 700% jump in EPS to $1.12 a share. In a welcome move, Smith & Wesson Brands (SWBI) saw its Relative Strength Rating rise from 68 to 71 on Wednesday.
The 71 Relative Strength Rating means that Smith & Wesson is outperforming 71% of all stocks, regardless of industry group. Stocks that go on to make the biggest gains typically have an RS Rating north of 80 in the early stages of their moves. See if Smith & Wesson Brands can continue to show renewed price strength and clear that threshold.
More Smith & Wesson Ratings
In addition to the rising RS Rating, the Springfield, Mass.-based company has a 74 EPS Rating, lower than the 80 rating that CAN SLIM investors look for. The 74 rating is based on prior years’ weakness and could rise if it continues to report strong earnings growth.
The maker of revolvers, pistols, rifles and firearms-related accessories has an 82 Composite Rating.
The Composite Rating contains a mix of five other IBD stock ratings. It combines the values of all those ratings to arrive at a single score of 1 to 99, where the best is 99.
In terms of fundamentals, in its most recent quarter earnings soared 700% year over year to $1.12 per share. That followed gains of 119%, 999%-plus and 999%-plus the prior three quarters.
Sales grew 102% last quarter to $257.6 million. Prior to that it reported 33%, 141% and 119% quarterly sales growth.
Other Top 5 Security/Safety Companies
Watchlist candidate Smith & Wesson Brands is not currently offering a proper buying opportunity.
See if the stock goes on to form a promising consolidation that could kick off a new price move. Or possibly a pattern such as three weeks tight or a rebound off its 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 rating measures price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price movement over the trailing 52 weeks compares to all the other stocks in our database.
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