One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Ubiquiti Networks cleared that benchmark Tuesday, with a jump from 79 to 83 Tuesday.

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

IBD's proprietary RS Rating tracks market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against other publicly traded companies.

Over 100 years of market history shows that the best-performing stocks typically have an RS Rating north of 80 as they launch their biggest runs.

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Ubiquiti Networks is trying to complete a consolidation with a 401.90 buy point. See if the stock can clear the breakout price in volume at least 40% above average.

Top and bottom line growth moved higher last quarter. Earnings were up 69%, compared to 43% in the prior report. Revenue increased from 38% to 51%. The company is expected to report its latest results on or around Nov. 6.

The company earns the No. 3 rank among its peers in the Telecom-Infrastructure industry group. Viasat and Ubiquiti Networks are also among the group's highest-rated stocks.