Stantec Inc. - (STN.TO) - August 28, 2023 (Daily Stock Report)


The last time we commented on Stantec Inc. was in the February 24th edition of the Daily Stock Report. Today, we see the shares are still in the favored zone of the SIA TSX Composite Index Report at a price of $90.22. It first entered the favored zone back on July 25, 2022, at a price of $60.83. There were very brief periods where the shares resided in the top of the neutral zone but still held its positive SMAX. This 13-month time frame represents a 48% increase. The shares currently occupy the #9 spot in the TSX Comp Index, up 13 spots in the past quarter. Stantec Inc is a sustainable engineering, architecture, and environmental consulting company. On August 9th, the company reported their second quarter earnings where they achieved record backlogs of $6.6 billion, up 11.4% since Dec 31, 2022, and increased guidance for the full year which the market took a liking to.

In looking at the attached Candlestick chart of Stantec Inc, we see that the shares found a bottom at around the $53.00 area back in May and June of last year creating a double bottom. Since then, the accumulation phase had begun with a rising uptrend of consistently higher highs and higher lows without any trend breaks.

Support can be found at its 50-day moving average at $87.85. It will be interesting to see moving forward, if this steady pattern of higher highs/higher lows can be maintained without a break in trend.

In the attached Point and Figure Chart at a 2% Scale, we see the share’s break above 2 very important prior resistance levels at $72.21 back in February when we last commented on STN.TO and then another break to new highs in July when the shares went above $84.60. Currently the shares exhibit a bullish Double Top pattern. Next potential resistance can be found at approximately the $95.27, and, above that, $99.12 based on measured moves.

To the downside, support is at its 3-box reversal of $82.94 and, below that, $76.62. With a perfect SMAX Score of 10, Stantec is exhibiting near term strength against all the asset classes.

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