Is the energy group's huge surge this year over? Here's one indicator it's not over yet; on Thursday, Constellation Energy stock rose even though the stock market was hitting its 2022 bottom. It also reached an important technical milestone. Recent IPO Constellation stock's Relative Strength (RS) Rating jumped into the 90-plus percentile with an improvement to 93, up from 90 the day before.
Constellation Stock Primed For Growth
The upgraded RS Rating puts Constellation stock in the top 7% of stocks in terms of price appreciation over the past year. Market research shows that stocks that go on to make the biggest gains often have an RS Rating over 80 at the beginning of a new run.
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Among its other key ratings Constellation stock has an 82 Composite Rating. 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.
Constellation also has aa adequate 76 EPS Rating, mainly reflecting earlier losses. However, last quarter Constellation Energy reported a 113% rise in EPS to 32 cents. The quarter prior to that its EPS rose 117% year over year. Sales last quarter edged up 1% to $5.59 billion.
The Baltimore-based company was formed after it broke off from former parent Excelon this year. Constellation operates natural gas and nuclear energy plants, and wind and solar green energy facilities. The energy company says on its website it provides 10% of the nation's carbon-free electricity.
Constellation Energy stock started trading on the Nasdaq in February and closed on Feb. 2 at 53.01. On Thursday it traded at 58.26, up fractionally for the day.
Working On A Consolidation Entry
Meanwhile, Constellation stock is working on a consolidation with a 68.78 entry. See if the stock can break out in heavy trade.
Constellation stock holds the No. 4 rank among its peers in the Energy-Alternative/Other industry group. Kenon and Arcosa are also among the top 5 highly rated stocks in the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's unique RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against all other stocks in our database.
