One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Dollar Tree now clears that threshold, with a jump from 80 to 83 Thursday.
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IBD's proprietary RS Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
Over 100 years of market history reveals that the top-performing stocks often have an 80 or higher RS Rating as they begin their biggest price moves.
Dollar Tree has moved more than 5% past a 79.80 entry in a first-stage consolidation, meaning it's now out of a proper buy range. Look for the stock to create a new chance to get in like a three-weeks tight or pullback to the 50-day or 10-week moving average.
In terms of fundamentals, Dollar Tree has posted two quarters of increasing earnings growth. Sales growth has also increased during the same period.
The company holds the No. 4 rank among its peers in the Retail-Discount & Variety industry group. Five Below is the top-ranked stock 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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