Is Sequent Scientific Stock Ready for a Breakout?

April 06 2021

Sequent Scientific stock is worth watching as the stock is forming an 8-week, 19% deep Consolidation. The current price is only 6% away from its ideal buy price of INR 265. Aggressive investors could use any tight area breakout inside the base as an opportunity to initiate a small position. A conservative approach may be to add the stock to your watchlist so that you are ready to pounce if it breaks out to the traditional entry point.

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 4.4% away from the 10-week moving average.

Sequent Scientific has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 88. In the last twelve months, the stock has rallied over 208.4% as compared to 60.6% 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 Sequent Scientific can maintain this outperformance, it could make sense as a CANSLIM trade.

Another key part of the jigsaw is institutional sponsorship. Sequent Scientific 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, Sequent Scientific has an excellent EPS Rank of 94, which indicates consistency in earnings. The earnings and sales for the stock have grown by 168% and 13%, respectively over the past three years. Its 3-years earnings stability is 53, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 168% and 18%, respectively. The 5-years earnings stability is 53. The return on equity for the last reported year is 9%.

The stock belongs to the industry group of Medical-Diversified. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 132. The current price of Sequent Scientific is -6% off from its 52-week high price and 262% above its 52-week low price.

The stock appears on our idea lists: Trend Template - 5 Months.

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