Boosted by 300% earnings growth last quarter, portable storage leader WillScot Mobile Mini (WSC) is testing a buy point while the market indexes remain in a correction. In a sign of leadership in a downturn, this growth stock’s relative strength line has already soared to a 52-week high.
Although WillScot Mobile Mini did not make the latest list of new buys by the best mutual funds, 59 funds with an “A+” rating from IBD own shares in WSC stock.
The Phoenix-based company sports a B Accumulation/Distribution Rating and a 1.2 up/down volume ratio in Stock Checkup.
WillScot Mobile Mini Posts Big Growth
Through a network of more than 280 branch locations and drop points in the U.S., Canada, Mexico and the United Kingdom, WillScot Mini Mobile specializes in flexible mobile office, portable storage and workspace productivity solutions.
The growth stock has delivered average earnings gains of 143% over the last three quarters, including the 300% spike reported in August. WillScot has also generated average annual EPS growth of 133% in the last three years.
Analysts now expect 46% earnings growth for the current quarter and 73% for the full year. Wall Street is forecasting 26% growth for 2023.
On the revenue side, WillScot Mobile Mini has produced average annual returns of 33% over the last three years.
With a 97 Composite Rating, the company earns top billing in the Commercial Services-Leasing industry group.
Growth Stock Takes Bumpy Road Toward Buy Point
While exhibiting unusual relative strength, WillScot is not immune to the turbulence in the market indexes. Reflecting that volatility, the growth stock has formed multiple double bottoms, a common chart pattern in rocky times.
It is now within striking distance of a 43.81 buy point in an early stage flat base.
In addition to soaring relative strength, its price action in key moving averages has been positive.
As an example, the growth stock’s 50-day line crossed back above its longer-term 200-day benchmark earlier this month. Plus, WillScot is trading above its 21-day line, which has also been trending higher.
While broad-based selling pressure has flashed a warning sign for all stocks, WillScot Mobile Mini continues to display market-leading strength and resilience.
Supplemented by strong growth and impressive estimates, the portable storage leader could be poised for a big move when the market rebounds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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