On Thursday, Centerpoint Energy earned an upgrade to its Relative Strength (RS) Rating, from 68 to 72.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.

History shows that the best stocks typically have an RS Rating of at least 80 in the early stages of their moves. See if Centerpoint Energy can continue to rebound and clear that threshold.

See How IBD Helps You Make More Money In Stocks

Centerpoint Energy is trying to complete a double bottom with a 26.80 buy point. See if it can clear the breakout price in volume at least 40% above average.

While sales growth fell last quarter from 18% to 11%, the bottom line grew 80%, up from -37% in the previous report. The company is expected to report its latest earnings and sales numbers on or around Nov. 5.

The company earns the No. 2 rank among its peers in the Utility-Diversified industry group. Centerpoint Energy and NRG Energy are also among the group's highest-rated stocks.