The oil and gas industry seems to be at an inflection point. It tanked during the pandemic as most people curtailed travel, and it surged as the pandemic faded. Case in point: Shares of oil field products and services company ChampionX nearly doubled from 17.83 in late September last year to 33.65 at the end of January. It's consolidated since then and it's not yet clear which way it goes from here. On a positive note, on Thursday the Relative Strength (RS) Rating for ChampionX stock rose to a higher percentile, as it got a lift from 67 to 74.
ChampionX Stock Eyes Top Growth Group
The rating upgrade brings watchlist candidate ChampionX stock within points of a key benchmark that CAN SLIM investors look for. Market research shows that the market's biggest winners often have an 80 or higher RS Rating in the early stages of their moves. See if ChampionX can continue to show renewed price strength and clear that threshold.
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Among other major ratings, Houston, Texas-based ChampionX stock has a 74 Composite Rating, a 79 Earnings Per Share Rating and, reflecting strong fundamentals, a bullish B SMR Rating (sales + profit margins + return on equity). One yellow flag is its E Accumulation/Distribution Rating, which shows that institutional investors are still not onboard.
Meanwhile, ChampionX stock is building a consolidation with a 33.75 buy point. See if it can clear the breakout price in heavy trade. On Thursday ChampionX fell nearly 3% to around 26.60.
Quarterly Earnings Growth Ranged Up to 155%
ChampionX reported a 64% surge in earnings in its most recent report, to 36 cents per share, while sales grew 10% to $948.4 million. The oil services company's profit growth over the past four quarters ranged from 64% to 155%.
Among its peers in the Oil & Gas-Drilling industry group, ChampionX stock holds the No. 2 rank, according to IBD Stock Checkup. Swiss contract oil drilling company Noble and deep water oil rig operator Diamond Offshore Drill are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength 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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