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Matson Stock One To Watch; Relative Strength Rating Jumps To Lofty 93 As Sales, Profits Soar

As the global supply chain tries to untangle itself from the coronavirus market crash, top-ranked ocean shipper Matson‘s (MATX) stock continues to trade near all-time highs. It’s seeing rising sales and triple-digit profit growth, and prospects for further growth look good as the economy rebounds. On Wednesday, the Relative Strength (RS) Rating for Matson stock climbed to 93, of a best-possible 99. It rose from 89 the day before.

The 93 RS Rating means that Matson stock price has outperformed 93% of all stocks over the past year. Stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves. Early Wednesday it rose to a fresh all-time high 91.79 before retreating to 86.47 in afternoon trading, down 3% amid market consolidation.

Matson Stock’s Other Ratings Excel

Among other key ratings, Matson has a superb 95 EPS Rating. Its Composite Rating is a best-possible 99. IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one rating. Honolulu-based Matson also has a B Accumulation/Distribution Rating, on an A+ to E scale, indicating moderately strong buying of its stock by institutional investors.

Earnings grew 388% last quarter to $3.71 per share. EPS the prior three quarters rose 94%, 444% and then a whopping 2,111%. Meanwhile, revenue grew 67% in its most recent quarter, to $874.9 million. That was its fourth quarter in a row of double-digit, ascending sales growth. The shipping company plans to announce third quarter earnings results after the market close on Nov. 3.

No. 1 Among Peers

Matson stock earns the No. 1 rank among its peers in the Transportation-Ship industry group. Danaos (DAC) and Navios Maritime Partners (NMM) are also among the group’s highest-rated stocks.


Looking For The Best Stocks To Buy And Watch? Start Here


Matson stock is now considered extended and out of buy range after clearing a 79.15 buy point in a third-stage cup without handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.

When looking for the best stocks to buy and watch, keep a close on eye on relative price strength. IBD’s unique rating identifies share price action with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price movement over the trailing 52 weeks stacks up against all the other stocks in our database.

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