You’ve probably seen the name Aramark (ARMK) on the uniform or equipment of a service provider. It is a leader in the business services and outsourcing industry. On Wednesday, the relative strength rating for Aramark stock hit a key benchmark, hitting a rating of 80, up 12 points from 68 the previous day.
On Tuesday, the company reported fiscal third-quarter earnings rose 733% to 25 cents per share. Revenue grew 38% year over year to $4.13 billion.
Aramark’s new higher RS rating makes it a good candidate to add to a watch list. Market research shows that the biggest winners in the market often have an RS rating of at least 80 at the start of their moves.
Aramark stock has near-perfect composite rating
Among other key ratings for Aramark stock, its composite rating is top notch 97 out of the best possible 99. It has a lightweight EPS rating of 77, but that reflects weak earnings growth at the start of the pandemic as businesses shut down. Over the past four quarters, its EPS growth has increased each quarter, from 160% a year ago to 733% growth last quarter. Above all, it has an A+ Capitalization/Distribution Rating on a scale from A+ to E with A+ peaks. This means that big investors like mutual funds and ETFs take care of Aramark stocks.
In May, Aramark announced that it planned to spin off its vaunted uniform business into a separate company. He says the move will be tax-free for Aramark and its shareholders.
Aramark, based in Philadelphia, offers a wide range of services and products, including catering services, facilities management and uniforms for hospitals, restaurants, businesses and leisure businesses, among others. The service provider operates in North America and 20 countries around the world.
Nearby point of purchase
Aramark’s stock builds a handleless cup base with a 40.05 entry. See if he can clear the breakout price in heavy trade. It has closed higher in 12 of the last 13 trading sessions as it quickly builds the right side of the cut pattern. On Wednesday afternoon, Aramark was up more than 1% to around 36.50.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD’s unique RS Rating identifies technical performance by showing how a stock’s price performance over the past 52 weeks compares to that of other stocks on major indices.
Please follow James DeTar on Twitter @JimDeTar
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