On Monday, Spectrum Brands Hldgs reached an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 81, up from 78 the day before.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

IBD's unique RS Rating tracks market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.

History reveals that the market's biggest winners tend to have an RS Rating of over 80 as they launch their biggest climbs.

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Spectrum Brands Hldgs broke out earlier, but is now trading about 4% below the prior 97.37 entry from a cup without 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 base to form. Also keep in mind that the latest pattern is a later-stage base, and such bases are more prone to failure.

The company showed 15% EPS growth last quarter. Revenue gains came in at 18%.

The company earns the No. 19 rank among its peers in the Building-Construction Products/Miscellaneous industry group. TopBuild and Builders Firstsource are also among the group's highest-rated stocks.