Arcutis Biotherapeutics Shows Market Leadership With Jump To 82 RS Rating

One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Arcutis Biotherapeutics (ARQT) just hit that mark, with a jump from 79 to 82 Thursday.

It’s a notable achievement because market research shows that the top-performing stocks typically have an RS Rating above 80 in the early stages of their moves.

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Dermatitis Drug For Children Is Arcutis’ 6th FDA Approval

Arcutis recently had its sixth dermatology medicine approved by the FDA. This one treats children’s skin diseases.

The dermatology drugmaker’s Zoryve cream provides effective treatment of dermatitis in children as young as two years old. The company says the cream is steroid-free and test show it’s “safe and well-tolerated.” The company made the drug available at the end of October.

Among its other ratings small-cap Arcutis has an 83 Composite Rating, putting it in the top 17% of stocks, regardless of industry, for price performance this past year. It also owns an 82 Relative Strength Rating and a 79 EPS Rating.

One yellow flag is its D- Accumulation/Distribution Rating, showing that big funds are selling more of its shares than buying despite its strong fundamentals.

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Westlake Village, Calif.-based Arcutis reported rising earnings every quarter this past year. It saw a 244% increase in earnings to 13-cents per share last quarter on an 81% jump in revenue to $129.5 million. The prior three periods it recorded EPS gains of 38%, 69% and 118%.

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In early February last year the drug company traded as low as 11.13 per share. It closed Thursday at 22.38, down for the day but more than double from a little more than a year ago.

Hit Multiyear High In December

Arcutis stock hit a 52-week high of 31.77 on Dec. 8 and it has consolidated this year in sync with the market. The 31.77 high though, was its highest price since May of 2021, making it one to watch. When the market turns up, Arcutis could make a fresh run for a record high.

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 moving average.

Arcutis Biotherapeutics earns the No. 61 rank among its peers in the 647-stock Medical-Biomed/Biotech industry group. Eton Pharmaceuticals (ETON), Kiniksa Pharmaceuticals (KNSA) and Amicus Therapeutics (FOLD) are among the top five highly rated stocks within the group.

IBD’s unique RS Rating tracks market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock’s price action over the trailing 52 weeks matches up against that of all other stocks

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.

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