This ASX stock just hit an all-time high. Is there more upside ahead?

ALS shares hit a record high as earnings growth, dividends, and strong momentum keep investors interested.

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Shares in ALS Ltd (ASX: ALQ) finished last week on a strong note, closing up 1.88% at $23.86.

Earlier in Friday's session, the ALS share price also hit a fresh all-time high of $23.91, marking another milestone in what has been an impressive run.

Over the past 12 months, ALS shares are now up around 53%, comfortably outperforming the S&P/ASX 200 Index (ASX: XJO). With momentum clearly building, investors may be wondering whether the rally still has room to run.

Let's take a closer look.

Why ALS shares are back in the spotlight

ALS is a global testing, inspection, and certification business, operating across commodities, life sciences, energy, and industrial markets.

The company runs more than 370 sites across around 65 countries, giving it a diversified earnings base. That global footprint has helped smooth earnings across cycles and reduce reliance on any single market.

In its H1 FY26 results, ALS reported underlying EBIT growth of around 14.7%, driven by solid demand across its core divisions. Management also pointed to improving operating margins and continued cost discipline.

That result reinforced the market's view that ALS remains well positioned despite broader economic uncertainty.

A reliable dividend with growth on top

ALS also continues to reward shareholders with dividends.

The company paid an interim dividend of around 19.4 cents per share, carrying a franking credit of close to 30%. While ALS is not a high-yield stock, the dividend provides a steady income stream alongside capital growth.

What the ALS chart is saying

The relative strength index (RSI) is hovering around 65, which suggests bullish conditions, though the stock is not yet at extreme overbought levels.

The share price is also trading above both its 50-day and 200-day moving averages, confirming a strong medium and long-term uptrend.

In terms of volatility, ALS has a beta of around 1.09, meaning it tends to move broadly in line with the market.

Support and resistance levels to watch

Now that ALS has moved above its previous highs, the $23.90 level could act as short-term support.

Below that, the $22 to $22.50 zone is an important support area based on recent trading activity. Further down, longer-term support sits closer to $21.50 to $21.80.

On the upside, the next psychological resistance level sits around $25.00, which some analysts see as a potential medium-term target if momentum continues.

Foolish takeaway

ALS has delivered strong gains, but the recent rally is backed by solid earnings growth, global diversification, and improving margins.

While short-term pullbacks are always possible after hitting an all-time high, the broader trend remains positive.

For investors looking for a quality industrial stock with momentum and defensiveness, ALS is one worth keeping on your watchlist.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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