One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Airbnb now clears that threshold, with a jump from 80 to 88 Friday before the open.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks compares to all the other stocks in our database.
Decades of market research reveals that the market's biggest winners tend to have an RS Rating north of 80 as they launch their biggest runs.
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While Airbnb is not near a proper buy point right now, see if it goes on to form and break out from a proper base. Reading a MarketSmith chart, you can see if broke out nicely on recent earnings. But it then gave everything back. It then bounced off the 50-day line which may have offered another entry point, as was discussed on this morning's edition of IBD Live.
Earnings Update
While sales growth fell last quarter from 29% to 24%, the bottom line grew 500%, up from 47% in the prior report.
The company holds the No. 2 rank among its peers in the Leisure-Travel Booking industry group. Trip.com Group ADR is also among the group's highest-rated stocks.
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