One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Mattel now clears that threshold, with a jump from 79 to 82 Wednesday.
Hone Your Stock-Picking Skills By Focusing On These Factors
IBD's proprietary rating measures price performance 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.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains often have an RS Rating of above 80 as they begin their biggest price moves.
Mattel broke out earlier, but has fallen back below the prior 20.28 entry from a cup with handle. If a stock you're tracking clears a buy point then falls 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 understand that the latest pattern is a later-stage base, and those involve more risk.
Mattel reported 0% EPS growth in the latest quarterly report, while sales growth came in at 2%. The company is expected to report its latest performance numbers on or around Jul. 23.
Mattel holds the No. 2 rank among its peers in the Leisure-Toys/Games/Hobby industry group. Hasbro 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.
RELATED:
Which Stocks Are Showing Rising Relative Strength?
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
