New to the IBD IPO Leaders list, HireRight (HRT) is one of the top IPO stocks to watch as the stock market rally strengthens. HRT stock is approaching a new buying point amid this week’s 15% rally.
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Keep an Eye on IPO Stock: HireRight
Tennessee-based HireRight is a provider of background and identity verification services.
On Aug. 4, the company reported Q2 earnings of 54 cents a share, while revenue rose 26% to $222.3 million. HireRight made just a penny in the same quarter last year.
“This strength reflects our continued high customer retention and upselling rates, new logo wins and secular trends leading to continued strong demand for labor in our target markets,” CEO Guy Abramo commented on the conference call.
He continued, “Demand for talent remains higher than historical norms and labor market brain drain continues at elevated levels compared to historical periods.”
Full-year earnings are expected to rise 40% to $1.74 per share in the current fiscal year. The lack of a strong current account pushed HireRight’s EPS rating down to 78, but the stock has an impressive composite rating of 97, according to IBD Stock Checkup indicates a broad market.
HRT stock is also ranked #1 in the software security industry group. On second place quality (QLYS) is trading just ahead of a 150.20 cup base entry.
HireRight shows new buy point
This standout IPO stock surged higher on the right side of a new cup base and sliced higher for seven days before experiencing mild profit-taking on Thursday.
After big gains, it’s normal for a stock to pause and build up a price that represents a lower-risk entry. At the moment the correct purchase time is 19.06.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about IPO stocks.
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