The return to office trend, although often unpopular with employees, is a boon for workplace services provider Bright Horizons. People need its child care, early education and life consulting services. Bright Horizons stock got a major rating lift Tuesday, as its Relative Strength (RS) Rating shot up 10 points, from 70 to 80.
The upgraded 80 RS Rating puts Bright Horizons stock in the top fifth of all stocks for price performance over the past year, making it potentially one of the best stocks to buy and watch. Market research shows that the top-performing stocks often have an RS Rating north of 80 in the early stages of their moves.
Bright Horizons Stock Rising Toward Buy Point
Bright Horizons stock is trying to complete a consolidation with a 98.87 buy point. See if it can clear the breakout price in volume at least 40% above average. In 13 months, Bright Horizons rose 68% from a 54.19 low on Oct. 11, 2022, to 90.33 Tuesday afternoon, down for the day. It's improved significantly over the past year but is still far below its all-time high above 182 set in late February 2021.
See How IBD Helps You Make More Money In Stocks
Among its other ratings Newton, Mass.-based Bright Horizons has a mild 60 Earnings Per Share Rating. That's largely due to what could be an outlier quarter two quarters ago.
Over the past four quarters the company posted earnings growth of 18%, 4% and -10%, only to surge 33% last quarter to 88 cents per share on 20% higher revenue to $645.8 million. Its revenue growth ranged from 14% to 23% over that period.
Bright Horizons stock has an excellent 91 Composite Rating, a mix of five fundamental and technical metrics that provides a broad evaluation of a stock. Additionally, its Accumulation/Distribution Rating is B on an A+ to E scale with A+ the best. The B rating shows that big funds are buying more of its shares than selling.
Peers In Education Services Group
Bright Horizons stock holds the No. 12 rank among its peers in the 41-stock Consumer Services-Education industry group. China-based New Oriental Education and online curriculum provider Stride are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, relative price strength is a good indicator.
The Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in the IBD database.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
