Trucking company Saia formed a nice, symmetrical cup base from August to mid-November. From there it looks to be forming an ugly handle on the cup. On Monday, the Relative Strength (RS) Rating for Saia stock climbed to 72, up from 64 last week.
The 72 RS Rating means that Saia has outperformed 72% of all stocks listed in the S&P 500 over the past 12 months. Market research shows that the best stocks tend to have an 80 or better RS Rating as they launch their biggest price moves. See if Saia stock can continue to rebound and hit that benchmark.
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Saia Stock's Other Ratings Outstanding
Saia is based in Johns Cree, Ga., in the greater Atlanta area. It says on its website it's been delivering goods since 1924. The specialty trucking firm provides less-than-truckload, expedited and logistics services across the U.S.
Among its other key ratings Saia stock has a near-best 98 Earnings Per Share Rating, out of 99, and a terrific 95 Composite Rating. It has a best-possible "A" SMR Rating (sales+profit margins+return on equity) and a strong B+ Accumulation/Distribution Rating, on an A+ to E scale. The B+ rating shows that institutional investors such as mutual funds and ETFs are fairly heavy buyers of its stock.
Saia stock slid 33% from a 263.37 high on Aug. 11 to 176.70 on Sept. 16. From there the stock watchlist candidate started to rise, building the right side of the cup base, and completed it at 265.56 on Nov. 15. It didn't break out from the cup, but could be forming an odd-shape handle. Watch for it to rise above 265.56 in strong volume or, alternately, form a fresh chart pattern such as a three-weeks-tight pattern that could kick off a new price move.
Quarterly Profit Growth Ranged From 28% to 113% This Past Year
Saia reported 28% earnings growth in the latest quarter, to $3.67 per share. The prior three quarters its EPS growth ranged from 75% to a whopping 113%. Sales for its most recent quarter rose 18% to $729.6 million. Like its earnings growth, sales growth was strong this past year.
Saia stock earns the No. 8 rank among its peers in the Transportation-Truck industry group. Universal Logistics and Covenant Logistics are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique RS Rating identifies technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
