When considering what names to put on your watch list, look for stocks with an 80 or higher RS Rating. Endava is one stock that just reached the mark, now earning a score of 82.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the last 52 weeks matches up against that of all other stocks.
Decades of market research shows that the best stocks tend to have an 80 or higher RS Rating as they launch their biggest price moves.
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While now is not an ideal time to buy shares, see if the stock manages to offer and clear an appropriate buy point.
The company showed 55% earnings growth in its most recent report, while sales growth came in at 48%.
Endava holds the No. 5 rank among its peers in the Computer-Technical Services industry group. Perficient and Hackett are also among the group's highest-rated stocks.
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