One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Electronic Arts just hit that mark, with a jump from 76 to 83 Monday.
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade 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 shows that the market's biggest winners tend to have an RS Rating of above 80 as they begin their biggest runs.
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Electronic Arts broke out earlier, but has fallen back below the prior 146.45 entry from a cup with handle. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to form. Also understand that the most recent pattern is a later-stage base, and such bases are more prone to failure.
Electronic Arts posted negative growth for both sales and earnings last quarter. The company is expected to report its next quarterly numbers on or around May 6.
Electronic Arts earns the No. 2 rank among its peers in the Computer Software-Gaming industry group. NetEase ADR is the No. 1-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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