Essent Meets 80-Plus Relative Strength Rating Benchmark

Shutterstock photo

Essent ( ESNT ) saw a welcome improvement to its Relative Strength ( RS ) Rating on Friday, rising from 78 to 82.

[ibd-display-video id=3105496 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies technical performance by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.

Over 100 years of market history shows that the top-performing stocks often have an RS Rating of above 80 as they launch their biggest climbs.

Looking For The Best Stocks To Buy And Watch? Start Here

The stock, which is on both the IBD 50 and Sector Leaders screens, is now considered extended and out of buy range after clearing a 41.54 buy point in a first-stage flat base . See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.

The company reported 26% EPS growth last quarter, while sales growth came in at 24%. The next quarterly numbers are expected on or around Feb. 10.

Essent earns the No. 1 rank among its peers in the Finance-Mortgage & Related Services industry group. LendingTree ( TREE ) and HFF ( HF ) are also among the group's highest-rated stocks.


IBD Stock Rating Upgrades: Rising Relative Strength

Why Should You Use IBD's Relative Strength Rating?

How Relative Strength Line Can Help You Judge A Stock

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Symbols: ESNT , RS , TREE , HF

More from Investor's Business Daily


Investor's Business Daily

Investor's Business Daily


Research Brokers before you trade

Want to trade FX?