The Relative Strength (RS) Rating for satellite maker and aerospace/defense supplier Aerojet Rocketdyne rose to 73 Tuesday, up from 70 the day before. It's a welcome improvement, but the company still has some work to do for its stock to get into high orbit.
The 73 RS Rating shows that Aerojet Rocketdyne stock has topped 73% of all stocks on price improvement over the past year. Market research shows that top-performing stocks typically have an RS Rating north of 80 in the early stages of their moves. See if Aerojet Rocketdyne can continue to rebound and clear that threshold.
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El Segundo, Calif.-based Aerojet Rocketdyne works with NASA on the space program. It's supplied rocket propulsion systems for manned and unmanned space vehicles launches since the start of the U.S. space program. It also supplies key components to Boeing, Lockheed Martin, the space exploration consortium United Launch Alliance and others.
Aerojet Stock's Other Ratings Shine
Taking a look at its other key ratings, Aerojet Rocketdyne has a strong 86 EPS Rating, of 99, and a slightly higher 87 Composite Rating. It's C Accumulation/Distribution Rating shows a roughly equal amount of buying and selling of Aerojet stock by institutional investors over the last 13 weeks.
Aerojet Rocketdyne stock is working on a consolidation with a 47.45 entry. See if the stock can break out in volume at least 40% higher than normal. Tuesday afternoon, its stock was down more than 3% as the market continues to consolidate.
Meanwhile, on May 3 Aerojet Rocketdyne reported that earnings grew 22% last quarter to 44 cents per share. Its revenue has continued to grow every quarter this past year despite the market pullback that began last November. It reported a mild 3% rise in revenue in its most recent quarter, to $511.1 million.
"During the quarter, our scramjet engines set an endurance record while powering a successful flight test of the Hypersonic Air-breathing Weapons Concept ("HAWC"). We are seeing the benefit of our commitment to advanced research and development," Aerojet Rocketdyne CEO Eileen Drake said in an earnings news release.
Peers In Aerospace/Defense Group
Aerojet Rocketdyne earns the No. 16 rank among its peers in the Aerospace/Defense industry group. Hexcel and AAR are 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 stock Relative Strength Rating measures price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the last 52 weeks compares to all the other stocks in our database.
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