Texas Pacific Stock Surged 75% In Two Months, Earns Rating Upgrade

In mid-December Texas Pacific Land (TPL) traded at 269.23. Thursday midday it traded around 485 on strong earnings the day before. It’s up about 10% for the day Thursday, up about 75% in two months and nearing a fresh all-time high.

Shares of the highly ranked land manager and oil & gas rights holder also cleared an important performance benchmark, with its Relative Strength (RS) Rating jumping into the 80-plus percentile with an improvement to 84, up from 80 the day before.

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Texas Pacific Stock Joins Possible Biggest Winners Group

The raised 84 RS Rating shows that Texas Pacific is in the top 16% of stocks for strong price performance over the last 52 weeks. Over 100 years of market history shows that the market’s biggest winners tend to have an RS Rating north of 80 as they launch their biggest price moves.

Risk Management In The Stock Market: How Much Money To Invest Now

Texas Pacific Land holds the No. 1 rank among its peers in the 14-stock Oil & Gas-Royalty Trust industry group, according to IBD Stock Checkup. Permian Basin Royalty (PBT) and Sabine Royalty (SBR) are also in the top five in their industry.

The company on Wednesday posted 5% earnings growth to $1.79 per share in its most recent report, while sales grew 14% to $211.6 million. Analysts forecast that EPS growth will accelerate to 10% this quarter, then 15%, 17% and 21%, according to FactSet.

Among its other ratings, Dallas-based Texas Pacific has an 83 EPS Rating out of 99. It also owns a terrific 96 Composite Rating, putting it in the top 4% of stocks for a group of the most important fundamental and technical metrics.

Importantly, it has an A Accumulation/Distribution Rating, showing that ETFs, insurance funds and other funds are heavy buyers of its stock.

Earnings Growth Forecast To Accelerate

Small cap Texas Pacific Land stock cleared a 349.59 buy point in a second-stage cup without handle on Jan. 20. For The IBD Methodology investors TPL stock has risen above the buy zone. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.

The exclusive Relative Strength Rating from Investor’s Business Daily measures price action with a 1 (worst) to 99 (best) score. The score shows how a stock’s price movement over the trailing 52 weeks holds up against all the other stocks in our database.

This article was created automatically with Stats Perform’s Wordsmith software using data and article templates supplied by Investor’s Business Daily. An IBD journalist may have edited the article.

Please follow James DeTar on Twitter @JimDeTar

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