Firstsource Solution has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 87. In the last twelve months, the stock has rallied over 184% as compared to 65.6% for the Nifty500.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Firstsource Solution can maintain this outperformance, it could make sense as a CANSLIM trade.
Today, Firstsource Solution has cleared a 10-week, 27% deep Cup With Handle Base. Currently, the stock is trading around just 1% away from its ideal buy price of INR 113. The price volume action so far is encouraging; it is up 9% on a volume over 680% as compared to 50-day average traded volume. The stock is offering investors an opportunity to get on board at the current price.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 16.2% away from the 10-week moving average.
Another key part of the jigsaw is institutional sponsorship. Firstsource Solution has an Accumulation/Distribution Rating of 'A'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Firstsource Solution has an excellent EPS Rank of 90, which indicates consistency in earnings. The earnings and sales for the stock have grown by 3% and 9%, respectively over the past three years. Its 3-years earnings stability is 7, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 8% and 7%, respectively. The 5-years earnings stability is 7. The return on equity for the last reported year is 12%.
The stock belongs to the industry group of Comml Svcs-Outsourcing. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 78. The current price of Firstsource Solution is -1% off from its 52-week high price and 472% above its 52-week low price.
The stock appears on our idea lists: Trend Template - 5 Months.