Deep discount retailer PriceSmart surprised Wall Street on July 10, putting up better than expected fiscal third quarter results. Its stock rose every day since then except Thursday. On Thursday PriceSmart stock initially popped to a more-than-three-year high. It reversed, closing down the first time in a week amid a market pullback.
The IBD Relative Strength Rating for PriceSmart stock climbed to 76, up from 70 the day before. The upgraded 76 RS Rating shows that PriceSmart tops 76% of all other stocks for price performance over the past year.
PriceSmart Behind Only Market Leader Walmart
San Diego-based PriceSmart holds the No. 2 rank among its peers in the Retail-Major Discount Chains industry group. Walmart is the top-ranked stock in the group. PriceSmart operates discount centers in 13 countries in Latin America and the Caribbean.
Can You Really Time The Stock Market?
PriceSmart is still inside a buying range after clearing an 87.99 entry in a flat base Thursday. The proper buying range extends to 5% above the initial entry. Once a stock hits that benchmark, it's best to hold off investing and wait for it to set up another buying opportunity.
PriceSmart posted 4% earnings growth in the latest quarterly report, to $1.08 per share. Revenue grew 12% to $1.23 billion. For the current quarter FactSet expects PriceSmart will put up a 111% gain in earnings on a 9% hike in revenue.
PriceSmart Stock A Favorite Among Big Money Investors
Among its other key ratings PriceSmart has a 79 Earnings Per Share Rating and a strong 89 Composite Rating, putting it among the top 11% of stocks for a group of fundamental and technical ratings.
Its Accumulation/Distribution Rating, a gauge of buying by institutional investors like ETFs and mutual funds, is an outstanding A- on an A+ to E scale. That shows avid buying by big money investors.
The exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history shows that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating as they launch their biggest climbs. See if PriceSmart can continue to rebound and hit that benchmark.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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