Metropolis Healthcare stock has cleared a 6-week, 19% deep Cup Without Handle Base this week. Currently, the stock is trading around just -2% away from its ideal buy price of INR 3232. The stock is offering investors an opportunity to get on board at the current price.
The stock closed in green for the week, but the volume remained below average. It was down 2.70% on a 9% higher volume than the 10-week average. It will be interesting to see how the stock behaves in the coming week. You would want to see the price volume momentum to pick up in the coming trading sessions.
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 7.7% away from the 10-week moving average.
In the last twelve months, Metropolis Healthcare has rallied nearly 68.4% as compared to 53.4% for the Nifty500. It has a Relative Strength Rating of 52. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.
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 Metropolis Healthcare can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Metropolis Healthcare has an Accumulation/Distribution Rating of 'B+'. 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, Metropolis Healthcare has an excellent EPS Rank of 95, which indicates consistency in earnings. The sales for the stock have grown by 16% over the past three years; however the earnings growth remained muted at -8%. Its 3-years earnings stability is 32, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 13% and 16%, respectively. The 5-years earnings stability is 34. The return on equity for the last reported year is 30%.
The stock belongs to the industry group of Medical-Services, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 48. The current price of Metropolis HealthCare is -6% off from its 52-week high price and 75% above its 52-week low price.
The stock appears on our idea lists: Growth 50,Minervini Trend Template.