The bullish trend in the RS Line indicates the stock is leading 96% of all stocks.
The RS line measures a stock’s price performance vs. the S&P 500. If the market’s down, good stocks will outperform by treading water. When the market rebounds, the stocks with best relative strength should bounce back even stronger than the market.
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PDC Energy stock is currently moving back above previous pivot highs, on 2.5 x average (RVOL) relative volume compared to Friday. The stock recently broke out of a cup and handle pattern and subsequently fading. The stock is currently 12% below its 52wk highs.
The company’s 73 EPS Rating tracks quarterly and annual earnings-per-share growth. We’re looking for that measure to improve to 80 or better as energy stocks remain “in-play.”
The stock pulled back to its 200d moving average and reversed on December 20. Most of the 57 stocks in its universe, Oil& Gas Exploration and Production tagged along.
In Q3, the company reported revenue growth of 95.2% year on year, while posting accelerating EPS gains for four consecutive quarters. Sales growth is projected to climb 25% in 2022.
Energy Sector Leaders
Leaders in the Oil & Gas Exploration & Production industry group, in descending order are Diamond Back Energy (FANG), number two ranked Conoco Phillips (COP), and number 3 ranked Denbury Resources (DEN). EOG Resources (EOG) is another favorite, rounding out the top 10 highly-rated stocks within the group.
Look for these stocks to follow through this year.