The Relative Strength (RS) Rating for Foot Locker entered a new percentile Friday, as it got a lift from 67 to 72.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique rating 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 reveals that the top-performing stocks often have an RS Rating north of 80 in the early stages of their moves. See if Foot Locker can continue to show renewed price strength and clear that threshold.
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Foot Locker broke out earlier, but is now about 5% below the prior 35.43 entry from a cup without handle. In the scenario 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 pattern to form. Also keep in mind that the most recent pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
The company saw both earnings and sales growth rise last quarter. Earnings-per-share increased from 0% to 8%. Revenue rose from -43% to 17%.
Foot Locker earns the No. 11 rank among its peers in the Retail-Apparel/Shoes/Accessories industry group. Citi Trends, Duluth and Zumiez are among the top 5 highly rated stocks within the group.
