One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Royalty Pharma cleared that benchmark Friday, with a jump from 80 to 83 Friday.
Risk Management In The Stock Market: How Much Money To Invest Now
This unique rating tracks market leadership by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
Decades of market research shows that the stocks that go on to make the biggest gains often have an 80 or better RS Rating as they launch their biggest runs.
Royalty Pharma is now considered extended and out of buy range after clearing a 34.20 buy point in a first-stage flat base. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
The company posted 5,400% EPS growth in the latest quarterly report, while sales growth came in at 0%. The company is expected to report its latest results on or around Aug. 6.
Royalty Pharma earns the No. 13 rank among its peers in the Medical-Biomed/Biotech industry group. Exelixis, TG Therapeutics and Harmony Biosciences are among the top 5 highly rated stocks 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.
RELATED:
Biotech And Pharmaceutical Industry And Stock News
Which Stocks Are Showing Rising Relative Strength?
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
