PriceSmart is to Latin America what Costco Wholesale is in the U.S. They both operate discount price big-box stores. In fact, PriceSmart and Costco were a single company at one time, and PriceSmart split off in 1997. On Tuesday, the Relative Strength (RS) Rating for PriceSmart stock climbed to 81, up from 77.
The best stocks often have an RS Rating of at least 80 in the early stages of their moves. The 81 RS Rating puts PriceSmart stock into that select group of stocks to watch.
PriceSmart has stores in 13 Latin American countries and the U.S. territory of Puerto Rico, with more than 3 million cardholders. It says it's the only operator of membership warehouse clubs in Central America, the Caribbean, and Colombia.
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PriceSmart Stock Setting Up For Fresh Breakout?
PriceSmart stock completed a long cup-with-handle pattern in mid-May. It broke out above a 79.55 buy point on July 11, but ended the day below it. It continues to trade near the prior buy point but is not currently showing a potential entry. See if the stock goes on to build a chart pattern that could spark a fresh run. Tuesday afternoon PriceSmart stock traded at 76.65, up for the day.
Among its other key ratings PriceSmart has an 85 Earnings Per Share Rating, out of 99. Additionally, it has an 87 Composite Rating, and it boasts an A- Accumulation/Distribution Rating, on an A+ to E scale. The A- rating shows that big funds are fairly heavy buyers of its stock.
52% Profit Surge Last Quarter
After mild but steady growth last year and early this year, PriceSmart went for a roller coaster ride. For the Feb. 28-ended quarter the company reported a 1% dip in earnings to $1.02 per share on 10% revenue growth, to $1.14 billion. However, for the May 31-ended quarter PriceSmart reported a 52% year-over-year surge in earnings to 94 cents per share, on 6% higher sales of $1.097 billion. The company will report fiscal fourth quarter earnings on Oct. 31.
PriceSmart stock holds the No. 2 rank among its peers in the Retail-Major Discount Chains industry group. Costco is No. 1 in the group. And Walmart is No. 3 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 unique Relative Strength Rating identifies market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks matches up against that of all other stocks.
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