Looking for a hot small-cap stock that’s skyrocketing? Check out Liquidity Services (LQDT), which saw its IBD SmartSelect Composite Rating jump to 97 Friday, up from 94 the day before. The upgrade came after its stock soared 30% Thursday.
Liquidity Services stock is now outpacing 97% of all other stocks in terms of key performance metrics and technical strength. The market’s biggest winners often have a 95 or higher rating in the early stages of a new price run, so that’s an important benchmark to look for when looking for the best stocks to buy and watch.
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Consumers and professional buyers are cautious amid economic geopolitical uncertainty as the Trump administration prepares to take the government reins and, on the global level, conflicts in the Middle East and Ukraine drag on. Liquidity Services provides online auction services for wholesale, surplus and salvage assets for professional buyers and sellers.
Liquidity Services Stock Hits All-Time High
The cautious mindset of consumers provides an opening for discount sellers like Walmart (WMT) and others in the retail sector. And for Liquidity Services, which provides services globally to retailers. Its customer partners include Amazon.com (AMZN), Bristol Myers Squibb (BMY), Honeywell (HON) and others.
On Thursday, Liquidity Services stock popped 30.7% to a record high at 33.66 after it reported better than expected quarterly results, with EPS rising 23% to 32 cents and revenue climbing 34% to $106.9 million. It continued rising and traded up about 3.5% Friday afternoon.
The auction services stock has now climbed above a proper buy zone after clearing the 23.66 entry in a flat base. Also, keep in mind that it’s a thinly traded stock, with average daily dollar volume under $8 million. Watch for it to form a fresh pattern like a cup with handle or three weeks tight.
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On the positive side, it has reported double-digit sales and profit growth the last three quarters in a row. Consensus of analysts surveyed by FactSet is for its earnings to jump 57% this quarter, the strongest growth in at least two years, on a 48% surge in revenue.
Other Ratings Also Shine
The stock earns a 91 EPS Rating, meaning its recent quarterly and longer-term annual earnings growth tops 91% of all stocks. Additionally, its A- Accumulation/Distribution Rating on an A+ to E scale shows heavy buying by institutional investors over the last 13 weeks.
Liquidity Services earns the No. 1 rank among its peers in the 60-stock Retail-Internet industry group. Amazon.com (AMZN) and Fiverr International (FVRR) are also among the group’s highest-rated stocks.
Please follow James DeTar on Twitter @JimDeTar
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