One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Sonic Automotive Cl A just hit that mark, with a jump from 80 to 83 Wednesday.
Hone Your Stock-Picking Skills By Focusing On These Factors
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
History reveals that the market's biggest winners typically have an RS Rating north of 80 in the early stages of their moves.
Sonic Automotive Cl A has climbed more than 5% past a 71.80 entry in a first-stage cup with handle, meaning it's now out of a proper buy range. Look for the stock to offer a new chance to get in like a three-weeks tight or pullback to the 50-day or 10-week line.
Earnings growth picked up last quarter from 9% to 49%. But sales fell from 8% to 6%.
The company holds the No. 5 rank among its peers in the Retail/Wholesale-Auto Parts industry group. Carvana Cl A 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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