Solara Active Marching North As it Breaks out of a 11-week Cup Pattern

Posted Date: May 18 2021

Solara Active Pharma stock has cleared an 11-week, 27% deep Cup Without Handle Base this week. Currently, the stock is trading around just 6% away from its ideal buy price of INR 1625. 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 15.04% away from the 10-week moving average.

 

Solara Active Pharma has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 81. In the last twelve months, the stock has rallied over 262.4% as compared to 61.1% 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 Solara Active Pharma can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Another key part of the jigsaw is institutional sponsorship. Solara Active Pharma has an Accumulation/Distribution Rating of 'A+'. This represents heavy institutional buying over the past few weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

 

On the earnings front, Solara Active Pharma has an EPS Rank of 55, which is okay but fails to impress a growth stock investor. The earnings and sales for the stock have grown by 80% and 6%, respectively over the past three years. Its 3-years earnings stability is 8, on a 0 to 99 scale (lower the better).  The return on equity for the last reported year is 11%.

 

The stock belongs to the industry group of Medical-Diversified. You would still want to see some improvement in the industry group rank group. The current industry group rank is 88. The current price of Solara Active Pharma is -5% off from its 52-week high price and 279% above its 52-week low price.

 

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

 
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