Rain Industries stock has broken out of a 7-week, 22% deep Cup With Handle. However, the stock is still offering investors an opportunity to get on board as the current price is only 3% away from the ideal buy price of INR 175.
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 10.78% away from the 10-week moving average.
Rain Industries has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 80. In the last twelve months, the stock has rallied over 168.1% as compared to 60.7% 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 Rain Industries can maintain this outperformance, it could make sense as a CANSLIM trade.
Rain Industries stock has a strong institutional support. The Accumulation/Distribution Rating of ‘B+’ represents heavy institutional buying over the past few 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, Rain Industries has an excellent EPS Rank of 90, which indicates consistency in earnings. The earnings and sales for the stock have seen de-growth of -13% and –7%, respectively over the past three years. Its 3-years earnings stability is 24, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 8% and 4%, respectively. The 5-years earnings stability is 41. The return on equity for the last reported year is 11%.
The current price of Rain Industries is -6% off from its 52-week high price and 196% above it 52-week low price. The stock belongs to industry group of Mining-Metal Ores, which is exhibiting excellent strength in the current market environment. The current industry group rank is 7.
The stock appears on our idea lists: Trend Template – 5 Months.
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