While investors kept scanning the megacaps this year, an under-the-radar stock has burst into the limelight, reminding investors that it is important to keep an eye on some of the rising stars outside the tech heavyweights.
Find Stocks To Watch: From Top IPOs To Large And Small Caps
Universal Technical Institute has gained a whopping 106% this year and recently formed a three-weeks-tight pattern. Shares are near a buy point of 26.65, putting the stock on the IBD 50 Stocks To Watch list.
Back in February, Investor's Business Daily reported that its Composite Rating — which includes the company's earnings performance as well as the stock's recent gains — had cleared a lofty 95% mark, a rare achievement for any stock. That rating has improved to 97 out of a best-possible 99 now, according to IBD Stock Checkup.
The company's strong earnings growth has also given it a robust EPS Rating of 96. That means it has outdone 96% of other stocks in the IBD database on the earnings front.
In the fourth quarter, sales grew 15% to $196.4 million while earnings of 34 cents per share were 127% higher than the prior year. Shares gapped up 19% after the earnings report on Nov. 20 and have headed higher since.
See The Latest Updates To IBD Watchlists
Mutual Funds Load Up On Universal Technical Institute
Mutual funds have been jumping in over the recent weeks, as shown by the stock's Accumulation/Distribution Rating of A+.
Further, more funds have been net buyers of the stock over the past four quarters. The Up/Down Volume Ratio, which indicates the level of demand for the stock, is an astounding 2.2.
Universal Technical Institute provides education services for skilled trades, transportation and health care students. The stock ranks second in its group.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
