Installed Building Products’ stock has two big drivers currently. The housing market is building momentum amid low supply and pent-up demand. And many people who had to work from home during the worst of the pandemic are choosing to continue working from home, and upgrading their homes. On Thursday, Installed Building Products (IBP) earned an upgrade to its Relative Strength (RS) Rating, from 68 to 71.
The 71 RS Rating means Installed Building Products stock has outperformed 71% of all stocks over the past year.
Stocks that go on to make the biggest gains often have an RS Rating of at least 80 as they launch their largest price moves. See if Installed Building Products can continue to show renewed price strength and clear that threshold.
Installed Building Products Expands Via Buyouts
Installed Building Products sells and installs a wide variety of home building products ranging from closet shelving to fire places, rain gutters and garage doors. On June 7, the company announced two acquisitions to expand its product portfolio. It bought General Ceilings and Partitions and, separately, it acquired Reliable Glass & Mirror.
Meanwhile, other key rating for Columbus, Ohio-based Installed Building Products tell a different story. For example its 94 EPS Rating reflects strong recent quarter and long-term profit growth. And its 82 Composite Rating is good, although it could be better.
IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
One caution flag is its E Accumulation/Distribution Rating, which gauges institutional investing strength on an A+ to E scale. The E rating means institutional investors are currently selling more shares than buying, indicating Installed Building Products stock needs more work.
Still, Installed Building Products has recorded double-digit earnings growth the past four quarters despite the economic shutdown in spring 2020. In its most recent quarter the company’s EPS rose 15% to 90 cents. That followed EPS growth of 29%, 22% and 34% the prior three periods.
Sales growth came in at 10% last quarter, to $437.1 million.
Installed Building Products holds the No. 3 rank among its peers in the Building-Maintenance & Services industry group. IES Holdings (IESC) and Installed Building Products (IBP) are also among the group’s highest-rated stocks.
Installed Building Products is trying to complete a consolidation with a 140.68 buy point. See if the stock can break out in heavy volume.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
This unique rating tracks market leadership by showing how a stock’s price movement over the last 52 weeks measures up against that of the other stocks in our database.
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