When considering what names to put on your watch list, focus on stocks with an 80 or higher RS Rating. FirstCash Holdings is one stock that just reached the mark, now earning a score of 82.
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IBD's unique RS Rating tracks technical performance 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.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they begin their biggest price moves.
FirstCash Holdings broke out earlier, but has fallen back below the prior 138.42 entry from a flat base. If a stock you're watching climbs above a buy point then declines 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new base and breakout. Also understand that the most recent consolidation is a later-stage base, and those involve more risk.
FirstCash Holdings reported 31% EPS growth last quarter, while sales growth came in at 0%.
FirstCash Holdings earns the No. 7 rank among its peers in the Finance-Consumer Loans industry group. SoFi Technologies, Atlanticus Holdings and Ezcorp Cl A 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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