On Tuesday, Principal Financial received a positive adjustment to its Relative Strength (RS) Rating, from 78 to 81.

When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.

IBD's unique rating measures price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the trailing 52 weeks holds up against all the other stocks in our database.

Decades of market research shows that the market's biggest winners typically have an RS Rating of at least 80 as they begin their biggest climbs.

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Principal Financial broke out earlier, but has fallen back below the prior 67.61 entry from a cup with handle. In the case 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 understand that the most recent pattern is a later-stage base, and those involve more risk.

Earnings growth declined last quarter from 33% to 16%. But sales moved higher, from -30% to 14%.

The company holds the No. 6 rank among its peers in the Insurance-Diversified industry group. American National and Hartford Financial Services are also among the group's highest-rated stocks.