The IBD SmartSelect Composite Rating for Funko increased from 94 to 96 Monday.
The new rating is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Funko is currently forming a consolidation on a weekly chart, with a 27.89 buy point. This is following a round trip loss on a daily chart cup with handle. Look for the stock to break out in volume at least 40% higher than normal.
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One weak spot is the company's 77 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
The company reported a -35% increase in earnings for Q2. Top line growth came in at 34%, down from 63% in the prior quarter.
Funko earns the No. 2 rank among its peers in the Leisure-Toys/Games/Hobby industry group. Jakks Pacific is the No. 1-ranked stock within the group.
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