ChampionX (CHX) has hit new highs after breaking out from a cup-with-handle base with a 32.85 buy point. Shares are in the buy zone as volume surges. Perfect 99 Composite and superior 94 Relative Strength Ratings support the bullish price action.
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This oil and gas provider drills, produces and runs midstream services. Texas-based ChampionX also manufactures support tools for pressure automation, temperature control and emission detection.
The stock show strong institutional interest, with mutual funds owning a whopping 72% of shares. It ranks first in the Oil & Gas-Drilling subsector, which holds 14th position among IBD’s 197 industry groups.
The stock has rock-solid fundamentals. Sales rose 25% to $1 billion in the third quarter while earnings of 33 cents per share marked impressive 120% year-over-year growth.
WIRE Hits New Highs
Encore Wire (WIRE) also hit new highs this week. Mutual funds are buying the stock, with ownership rising from 521 to 554 funds in the last four quarters.
The Texas manufacturer makes copper and aluminum wires for homes, offices and other buildings used by various industries, ranging from health care to power plants.
WIRE stock is breaking out of a cup base with a buy point of 155.45 in lighter-than ideal volume. However, the RS line is at a 52-week high, a bullish indicator. WIRE has 93 Composite and 80 Relative Strength Ratings.
It ranks third in the Electrical-Power Equipment subsector. This isn’t a leadership group, ranking in the middle of IBD industry groups.
The company will report Q4 2022 results Feb. 14. Q3 sales of $762.4 million grew 6% from the previous year while earnings rose 17% to $9.97 per share.
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Source: https://www.investors.com/stock-lists/new-highs/new-highs-two-stocks-make-new-highs-as-more-funds-buy-them-up/?src=A00220&yptr=yahoo