Penumbra had its Relative Strength (RS) Rating upgraded from 62 to 79 Friday — a welcome improvement, but still below the 80 or better score you look for.
IBD's unique RS Rating measures technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the last 52 weeks compares to the rest of the market.
Decades of market research shows that the stocks that go on to make the biggest gains tend to have an RS Rating of above 80 as they launch their largest runs. See if Penumbra can continue to rebound and clear that threshold.
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Penumbra is now considered extended and out of buy range after clearing a 211.19 buy point in a first-stage flat base. 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.
The company posted 27% earnings growth last quarter. Sales gains came in at 11%.
The company earns the No. 8 rank among its peers in the Medical-Products industry group. LeMaitre Vascular, Insulet and Bioventus are among the top 5 highly rated stocks within the group.
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