Laurus Labs stock has cleared an 11-week, 14% deep Flat base today. The stock is up over 4.0% on volume 250% greater than the 50-day average volume. Currently, the stock is trading around just 1% away from its ideal buy price of INR 386. The stock is offering investors an opportunity to get on board at the current price.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 8% away from the 10-week moving average.
Laurus Labs has been a roaring outperformer as compared to the broader market. It has a top-notch Relative Strength Rating of 93. In the last twelve months, the stock has soared over 354% as compared to 60.6% for the Nifty500.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Laurus Labs can maintain this outperformance, it could make sense as a CANSLIM trade.
Laurus Labs stock has a strong institutional support. The Accumulation/Distribution Rating of ‘A-‘ represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.
On the earnings front, Laurus Labs has a respectable EPS Rank of 78, which is okay but needs improvement. The earnings and sales for the stock have grown by 68% and 26%, respectively over the past three years. Its 3-years earnings stability is 61, on a 0 to 99 scale (lower the better). Over the past five years, the sales for the stock have grown by 16%; however the earnings growth remained muted at -14%. The 5-years earnings stability is 99. The return on equity for the last reported year is 14%.
The stock belongs to the industry group of Medical-Diversified. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 132. The current price of Laurus Labs is -2% off from its 52-week high price and 471% above its 52-week low price.
The stock appears on our idea lists: Growth 50, Trend Template – 5 Months.
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