- Axos Financial (AX) is making waves in the IBD 50 Stocks To Watch, with shares breaking out of a cup base and a buy point of 60.
- IBD MarketSurge’s chart tools indicate that the financial company’s relative strength line, a measure of the stock’s performance against the S&P 500, is at a new high.
- The company’s sales and earnings have demonstrated steady growth over the past eight quarters, with sales growth ranging between 18% and 55% and earnings growth between 15% and 44%.
Axos Financial (AX) is gaining momentum in the stock market with a buy point of 60 and a new high in its relative strength line. The company’s steady growth in sales and earnings over the past eight quarters makes it a noteworthy contender in the IBD 50 Stocks To Watch.
Consistent Growth in Sales and Earnings
Sales for Axos Financial grew by 27% to $294.8 million during the fiscal third quarter ended March 31, while earnings grew by 44% to $1.94 per share. Following the April 30 report, shares gapped up, triggering a four-day rally towards the buy point. The company’s net income also increased by 38.7% to $110.7 million.
High Ratings and Increased Ownership
Axos stock climbed 0.7% Thursday afternoon, just above the entry point of 60. The stock boasts a Composite Rating of 98 out of 99 and an EPS Rating of 97. Its Relative Strength Rating of 92 is also a testament to its strength. Mutual funds have been net buyers of the stock in recent weeks, giving it an Accumulation/Distribution Rating of B. Mutual funds now own 62% of outstanding shares. The stock is also a holding in several indices including the Russell 2000 Index, the S&P Small Cap 600 Index, the KBW Nasdaq Financial Technology Index, and the Travillian Tech-Forward Bank Index.
Conclusion
Axos Financial’s consistent growth in sales and earnings, high ratings, and increased ownership by mutual funds make it a stock to watch. The company’s presence in several key indices further solidifies its position in the market. As the holding company for Axos Bank, Axos Clearing, and Axos Invest, Axos Financial is well-positioned for continued growth and success in the financial sector.
