Graphic Packaging saw a welcome improvement to its Relative Strength (RS) Rating on Friday, rising from 70 to 85. The paperboard packaging firm earns a 95 IBD Composite Rating.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database.
History shows that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they launch their biggest price moves.
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Is Graphic Packaging Stock A Buy?
Graphic Packaging stock broke out earlier, but is now about 4% below the prior 21.66 entry from a consolidation. If a stock you're tracking clears a buy point then retreats 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new base and entry price. Also keep in mind that the latest consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
Earnings growth dropped in the most recent quarter from 31% to 11%. But sales moved higher, from 5% to 20%.
Graphic Packaging stock earns the No. 1 rank among its peers in the Paper & Paper Production industry group.
