For Thomson Reuters (TRI), artificial intelligence (AI) is shaping up to be a game-changer. The company has already begun utilizing generative AI, and investors are starting to take notice. In fact, Thomson Reuters stock recently received a rating upgrade, with its Relative Strength (RS) Rating climbing from 68 to 73.
The RS Rating is an important metric that indicates a stock’s price appreciation compared to other stocks. A higher rating signifies that a stock has outperformed a greater percentage of its peers. In this case, Thomson Reuters ranked higher than 73% of all stocks for price appreciation in the past year. This puts the company on the brink of a significant milestone, as research has shown that stocks that make the biggest gains often have an RS Rating over 80 in the early stages of their upward movement.
Despite its recent rating upgrade and potential for growth, Thomson Reuters stock has primarily moved sideways since March. However, analysts predict continued upward momentum and a possible breakout in the near future. It’s worth noting that the company already boasts other impressive ratings, including a strong 93 Composite Rating, a best-possible 99 Earnings Per Share Rating, and a B Accumulation/Distribution Rating. The B rating indicates that large institutional investors are showing heavy interest in the stock.
Taking a closer look at the technical analysis, Thomson Reuters stock has been working on a consolidation pattern with an entry point of 138.85. Traders should keep an eye out for a breakout in volume that is at least 40% higher than normal. In terms of financial performance, the company saw a 41% increase in earnings per share (EPS) last quarter and a slim 1% rise in revenue. While EPS growth has been consistently strong in the past year, ranging from 24% to 70%, revenue growth has been sluggish, with growth rates of only 1% to 4%.
In the Commercial Services-Market Research industry group, Thomson Reuters stock ranks as the third-best stock among its peers. Other high-rated stocks in the group include Morningstar (MORN) and FactSet (FDS). When searching for potential investments, it’s crucial to consider relative price strength. The RS Rating, which measures a stock’s performance relative to other stocks in the market, provides valuable insights into a stock’s technical performance.
As Thomson Reuters continues to harness the power of AI and attract the attention of investors, it is poised for further growth. The company’s focus on leveraging generative AI technology positions it well in an increasingly digitized world. With strong ratings and the potential for a breakout, Thomson Reuters is a stock to watch in the ever-evolving landscape of technology and information services.
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