On Thursday, Madrigal Pharmaceuticals reached a key technical benchmark, with its Relative Strength (RS) Rating moving into the 80-plus percentile with an improvement to 82, a rise from 74 the day before.
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This proprietary rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matches up against other publicly traded companies.
Over 100 years of market history shows that the stocks that go on to make the biggest gains often have an RS Rating of at least 80 in the early stages of their moves.
Madrigal Pharmaceuticals is working on a consolidation with a 377.46 buy point. See if it can clear the breakout price in heavy trade. Be aware that it's a third-stage base. Such patterns do sometimes lead to significant gains, but, statistically, they're more likely to fail than earlier-stage consolidations.
The company showed 0% earnings growth last quarter, while sales growth came in at 0%.
The company holds the No. 80 rank among its peers in the Medical-Biomed/Biotech industry group. ADMA Biologics, Halozyme Therapeutics and Catalyst Pharmaceuticals 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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