Stocks made a pivotal move up this past week, as the market is now in a confirmed uptrend. Two stocks at new highs on Friday include Grainger and Science Applications International.
Grainger broke out of a double-bottom base on heavy volume, hitting the 508.87 buy point, and is in the 5% buy zone. Shares spiked on better-than-expected Q2 earnings and sales reports, with management raising full-year 2022 sales guidance.
Grainger stock is at a new high on the relative strength line, as indicated by a blue dot on the MarketSmith chart.
This industrial supply company is No. 2 in the Building Products group, which is ranked No. 126 out of 197 industry groups that IBD tracks.
The company's quarterly EPS growth rate has ranged from 49% to 68% in the last three quarters. It holds an impressive 93 on both Composite and EPS Ratings.
Stocks At New Highs: Defense Tech Provider Gaps Up
Science Applications International gapped up above the 96.06 buy point of a cup-with-handle base. The stock has a 93 Relative Strength Rating, meaning it has outperformed 93% of the stocks in the IBD database.
The company provides technology and engineering applications for national defense, including all four branches of the U.S. military. Other business segments include space, civilian and intelligence markets.
The company has reported unimpressive EPS in the last two quarters. Sales growth has been modest, ranging from 4% to 6% in the last three quarters.
SAIC has a respectable 91 Composite Rating but a lower-than-desired 77 EPS Rating. The 27% return on equity is well above the 17% threshold in CAN SLIM guidelines and pays a 1.5% annual dividend yield to shareholders.
