For an Information Technology company like Thomson Reuters, artificial intelligence could be a game-changer. The company has already begun to utilize generative AI and investors are taking notice. On Thursday the Relative Strength (RS) Rating for Thomson Reuters stock climbed to a higher percentile, as it got a lift from 68 to 73.
The 73 RS Rating means Thomson Reuters topped 73% of all stocks for price appreciation this past year. The IT company is closing on a crucial milestone. Research shows that stocks that go on to make the biggest gains often have an RS Rating over 80 in the early stages of their moves. It's nearing that benchmark.
Still, the company's stock has primarily moved sideways since March. Look for continued upward momentum and a possible breakout.
Among other ratings Thomson Reuters stock has a strong 93 Composite Rating, a best-possible 99 Earnings Per Share Rating and a B Accumulation/Distribution Rating on an A+ to E scale. The B rating shows that big money investors like ETFs and mutual funds are fairly heavy buyers of its stock.
See How IBD Helps You Make More Money In Stocks
Thomson Reuters Stock Working On Consolidation Pattern
Thomson Reuters stock dropped to a 97.59 low on Oct. 14, 2022. It's risen this past year and closed at 126.92 Thursday. It's working on a consolidation with a 138.85 entry. See if the stock can break out in volume at least 40% higher than normal.
Earnings last quarter jumped 41% to 82 cents per share, up from 40% growth the prior quarter. Also last quarter it posted a slim 1% revenue gain to $1.59 billion. Thomson Reuters posted strong EPS growth this past year ranging from 70% to 24%, 40% and then 41%. In contrast revenue over that period grew at a snail's pace: 3%, 4%, 2% and 1%. Look for the company to maintain its strong profit growth and improve its sales growth this quarter.
Among Top 5 In Industry Group
Thomson Reuters stock earns the No. 3 rank among its peers in the 14-stock Commercial Services-Market Research industry group. Morningstar and FactSet are also 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 measures technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
