Sterlite Technologies stock has broken out of a 14-week, 28% deep Ascending Base 4-weeks ago. However, the stock is still worth watching as the current price is only 8% away from the ideal buy price of INR 238.
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 13.42 % away from the 10-week moving average.
In the last twelve months, Sterlite Technologies has rallied nearly 151.1% as compared to 59.6% for the Nifty500. It has a Relative Strength Rating of 67. We definitely would like 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 Sterlite Technologies can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Sterlite Technologies has an Accumulation/Distribution Rating of 'B+'. 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, Sterlite Technologies has an excellent EPS Rank of 89, which indicates consistency in earnings. The sales for the stock have grown by 12% over the past three years; however the earnings growth remained muted at -19%. Its 3-years earnings stability is 34, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 16% and 23%, respectively. The 5-years earnings stability is 46. The return on equity for the last reported year is 14%.
The current price of Sterlite Technologies is -1% off from its 52-week high price and 178% above it 52-week low price. The stock belongs to industry group of Computer-Networking, which is exhibiting excellent strength in the current market environment. The current industry group rank is 19.
The stock appears on our idea lists: Trend Template - 5 Months.