On Thursday, Select Water Solutions reached a key performance benchmark, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 94, up from 84 the day before.
IBD's proprietary RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks matches up against the rest of the market.
Decades of market research shows that the best stocks typically have an RS Rating of above 80 at the beginning of a new price run.
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Select Water Solutions has climbed more than 5% past a 12.27 entry in a second-stage consolidation, meaning it's now out of a proper buy zone. Look for the stock to offer a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Top and bottom line growth moved higher last quarter. Earnings were up 7%, compared to -35% in the prior report. Revenue increased from -10% to -5%.
The company earns the No. 7 rank among its peers in the Utility-Water Supply industry group. Middlesex Water, Global Water Resources and Calif Water Svc Grp are among the top 5 highly rated stocks within the group.
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