IBD Stock Analysis
- Xpel stock cleared a 94.31 buy point intraday.
- The relative strength line reached a new high.
- Shares have a highest-possible Composite Rating of 99.
Industry Group Ranking
* Not real-time data. All data shown was captured at
12:37PM EDT on
On May 25, XPEL announced it’s acquiring PermaPlate, a distributor and installer of auto window films serving hundreds of dealerships. The company expects the $30 million purchase to add to revenue and earnings this year.
And last year, XPEL acquired Veloce Innovation, a provider of architectural films for use in residential, commercial, marine and industrial settings. It’s looking to expand in the “key” architectural window film segment, the company said.
XPEL Stock Technical Analysis
Shares pared earlier gains and were up 2% at 93.85 in above-average volume on the stock market today. But earlier in the session, XPEL stock rose as high as 97.83, topping a 94.31 buy point off a consolidation that stretches back to early June, according to MarketSmith chart analysis.
The relative strength line made a new high as the stock broke out, a bullish sign. A rising RS line, the blue line in the chart shown, means a stock is outperforming the S&P 500 index.
Its Composite Rating, which combines key fundamental and technical metrics in a single easy-to-use score, is a also a best-possible 99.
XPEL belongs to the auto/truck parts replacement industry group, which ranks a solid No. 34 out of 197 groups tracked by IBD. The group, which has been showing strong share-price momentum as a whole, includes Motorcar Parts of America (MPAA), Dorman (DORM) and Standard Motor (SMP).
XPEL Earnings, Outlook
Over the past three years, XPEL earnings per share grew 148% annually and sales grew 33% annually, according to FactSet. But in the latest quarter, XPEL earnings surged 317%, lapping a pandemic hit a year ago, while sales jumped 83%. XPEL stock has an EPS Rating of 95 out of 99.
“We saw strong growth across all of our regions, particularly in China where we first experienced Covid-19 impact during the first quarter of last year,” CEO Ryan Pape said in a May 10 earnings release.
For all of 2021, Wall Street expects XPEL to grow earnings 75% as sales increase 54%. They’re seen growing a further 33% and 21% in 2022, respectively.
XPEL shows an Accumulation/Distribution Rating of B-, on an A+ to E scale. That means institutions have been moving money into this small-cap growth stock. In fact, XPEL stock shows eight quarters of increasing fund ownership, with 206 funds owning it as of June, up 6% from March.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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