On Monday, Tsakos Energy Navigation stock got an upgrade for its IBD SmartSelect Composite Rating from 94 to 96. The oil and gas transportation services stock sports Relative Strength Rating of 99.
The new score means the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Tsakos Energy Navigation stock broke out earlier, but is now trading approximately -3% below the prior 19.23 entry from a cup with handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to form. Be aware that it is a thinly traded stock, with average daily dollar volume under $8 million. Less liquid stocks are more prone to large daily or weekly fluctuations since it takes fewer shares bought or sold to move the share price.
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One weak spot is the company's 71 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of A- shows heavy buying by institutional investors, such as mutual funds and pension funds, over the last 13 weeks.
Will Tsakos Energy Navigation's Growth Continue?
In Q2, the company posted 0% earnings-per-share growth. Top line growth increased 59%, up from 8% in the prior quarter. That marks four consecutive reports with rising growth. The company's next quarterly report is expected on or around Nov. 30.
Tsakos Energy Navigation stock holds the No. 13 rank among its peers in the Oil&Gas-Transportation/Pipeline industry group. EnLink Midstream, MPLX and Flex LNG are among the top 5 highly-rated stocks within the group.
