Valaris saw its IBD SmartSelect Composite Rating rise to 96 Wednesday, up from 94 the day before.
The new score tells you the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The market's biggest winners often have a 95 or higher grade in the early stages of a new price run, so that's a good item to have on your checklist when looking for the best stocks to buy and watch.
Valaris is currently extended beyond a proper buy zone after clearing the 60.23 buy point in a cup with handle. This is the second time it has entered and passed the buy area. Another pullback is possible but adds another level of risk.
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Earnings Review
One weak spot is the company's 78 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. It does, however, pass 8 0f 9 items on the MarketSmith CANSLIM benchmark criteria.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
In Q3, the company posted 0% earnings growth. Sales growth came in at 34%, down from 41% in the previous quarter.
Valaris holds the No. 3 rank among its peers in the Oil & Gas-Drilling industry group. ChampionX is the top-ranked stock within the group.
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