On Wednesday, ESAB hit an important technical milestone, with its Relative Strength (RS) Rating climbing into the 90-plus percentile with an improvement to 92, a rise from 86 the day before.
IBD's unique rating measures share price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks stacks up against all the other stocks in our database.
Decades of market research shows that the stocks that go on to make the biggest gains typically have an RS Rating of above 80 at the beginning of a new price run.
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ESAB is now considered extended and out of buy range after clearing a 114.03 buy point in a third-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
ESAB saw both earnings and sales growth rise last quarter. Earnings-per-share increased from 9% to 16%. Revenue rose from -2% to -1%.
The company earns the No. 9 rank among its peers in the Machinery-General Industrial industry group. SPX Technologies, Badger Meter and Flowserve are among the top 5 highly rated stocks within the group.
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