When looking for the best stocks to buy and watch, focus on those with rising relative price strength.
One stock that fits that bill is Schrodinger, which had its Relative Strength (RS) Rating upgraded from 76 to 82 Friday. After a multi-year decline in price the stock is attempting to a positive move up. It has cleared key moving averages recently, with high-volume spikes.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary rating identifies technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the last 52 weeks matches up against that of all other stocks.
Decades of market research shows that the best-performing stocks tend to have an RS Rating of over 80 in the early stages of their moves.
See How IBD Helps You Make More Money In Stocks
While now is not an ideal time to buy shares, see if the stock manages to offer and clear an appropriate buy point. Ideally a traditional stock pattern such as a cup with handle. Keep a close eye on possible wedging action, as noted by IBD Live regular, David Ryan.
Earnings News
Schrodinger posted 0% EPS growth in the latest quarterly report, while sales growth came in at 23%. Next report is over a month away, currently set for May 17.
The company earns the No. 9 rank among its peers in the Medical-Research Equipment/Services industry group. Agilent Technologies and Thermo Fisher Scientific are also among the group's highest-rated stocks.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
