Corporate uniform services giant Aramark reported a 121% leap in earnings to 31 cents per share last quarter. That came on the heels of EPS gains of 30%, 173% and 190% the preceding three quarters.
Revenue growth has been steady although at a milder pace, growing 12%, 13%, 7% and 8% last quarter to $4.38 billion.
Aramark Stock Passes A Major Milestone
Aramark also cleared a rating threshold Tuesday, with a Relative Strength Rating jump from 80 to 84. History shows that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 in the early stages of their moves. Welcome Aramark to that club.
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Among other key ratings, Aramark has an Earnings Per Share Rating of 82 out of 99. It also carries an outstanding 93 Composite Rating, a composite of five other technical and fundamental metrics. The 93 rating puts it in the top 7% of stocks overall.
Additionally, Aramark stock has a terrific A- Accumulation/Distribution Rating on an A+ to E scale with A+ superb and E dismal. The A- rating shows that institutional investors like ETFs and mutual funds are fairly heavy buyers of its stock.
Aramark stock broke out of a flat base with a 33.04 buy point on May 10. It traded at about 35.35 Tuesday afternoon, up nearly 1% for the day. It's trading just above buy range. 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.
Among Top 5 In Its Industry
Aramark holds the No. 3 rank among its peers in the 22-stock Commercial Services-Outsourcing industry group. Corporate security and management products provider Red Violet is the No. 1-ranked stock in the group.
IBD's proprietary Relative Strength Rating measures technical performance by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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