One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Kroger now clears that threshold, with a jump from 78 to 81 Tuesday.
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This proprietary rating measures technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the last 52 weeks matches up against the rest of the market.
Over 100 years of market history shows that the best-performing stocks often have an RS Rating north of 80 as they begin their biggest climbs.
Kroger broke out earlier, but has fallen back below the prior 73.63 entry from a flat base. If a stock you're tracking clears a buy point then declines 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 buy point. Also keep in mind that the most recent pattern is a later-stage base, and those involve more risk.
Earnings grew 4% last quarter, up from 0% in the prior report. Revenue also increased, from -7% to 0%.
Kroger holds the No. 4 rank among its peers in the Retail-Super/Mini Markets industry group. Casey's General Stores 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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