One important metric to look for in a stock is an 80 or higher Relative Strength Rating. AZZ just hit that mark, with a jump from 79 to 82 Monday.
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This unique rating identifies market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the trailing 52 weeks matches up against the rest of the market.
Decades of market research shows that the best-performing stocks often have an RS Rating north of 80 as they launch their biggest runs.
AZZ broke out earlier, but has fallen back below the prior 95.56 entry from a cup with handle. If a stock you're tracking clears a buy point then retreats 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new base and entry price. Also keep in mind that the most recent pattern is a later-stage base, and such bases are more prone to failure.
The company posted 5% earnings growth in its most recent report, while sales growth came in at -4%. The company is expected to report its latest results on or around Jul. 14.
The company earns the No. 7 rank among its peers in the Electrical Power/Equipment industry group. Vertiv Holdings, American Superconductor and BWX Technologies are among the top 5 highly rated stocks within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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