Financial services companies have gotten a boost amid slowly rising interest rates and an erratic but still bullish stock market. Among them, MSCI (MSCI), which provides investment decision tech support tools, got a bump up for its Relative Strength (RS) Rating into a new percentile Tuesday, as it rose from 68 to 72.
The 72 RS Rating means that MSCI stock is outperforming 72% of all stocks.
Stocks that go on to make the biggest gains typically have an 80 or better RS Rating as they launch their biggest runs. See if MSCI can continue to show renewed price strength and hit that benchmark.
Excellent Earnings Growth
MSCI stock also has an excellent 94 EPS Rating. That means it’s in the top 6% of all companies in terms of recent and long-term profit growth. Its Composite Rating, a composite of five key ratings, is a strong 84, a bit lighter than the 90 or better rating that CAN SLIM investors look for in watchlist candidates.
Its stock has had a long run-up from a December 2018 low of 134.28 to about 497 Tuesday, rising more than 300% in the intervening two-and-a-half years.
Top and bottom line growth moved higher in the company’s most recent quarter. Earnings were up 29% to $2.46 per share, compared to 17% growth the prior report. Revenue grew 15% to $478.4 million. MSCI is one of the few companies that posted higher profit and sales every quarter over the past year.
“Combined with impressive quarterly revenues and Adjusted EPS, we are beginning the year with a strong financial foundation …” CEO Henry Fernandez said in the company’s April 27 first quarter earnings report.
Peers In Highly Ranked Fin’l Services Group
MSCI earns the No. 19 rank among its peers in the Financial Services-Specialty industry group. 360 Digitech (QFIN) and Nasdaq (NDAQ) are among the group’s highest-rated stocks. The group is ranked a strong No. 34 on IBD’s list of 197 industry groups.
MSCI passed a cup-without-handle 495.26 buy point Tuesday. It was up 1.3% to 496.95 Tuesday afternoon. Volume was up just 7%, well shy of the 30% to 40% volume rise you’d like to see when a stock moves into a buy zone.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor’s Business Daily identifies share price performance with a 1 (worst) to 99 (best) score. The score shows how a stock’s price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
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