Stocks Flashing Renewed Technical Strength: Warrior Met Coal
Warrior Met Coal had its Relative Strength (RS) Rating upgraded from 89 to 92 Monday.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's proprietary RS Rating identifies technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
History shows that the top-performing stocks typically have an RS Rating north of 80 in the early stages of their moves.
Warrior Met Coal broke out earlier, but has fallen back below the prior 26.00 entry from a cup without handle. If a stock you're tracking clears a buy point then declines 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new chart pattern and buy point. Also keep in mind that the latest pattern is a later-stage base, and such bases are more prone to failure.
Warrior Met Coal saw both earnings and sales growth rise last quarter. Earnings-per-share increased from -79% to 238%. Revenue rose from -6% to 39%.
Warrior Met Coal earns the No. 7 rank among its peers in the Energy-Coal industry group. Ramaco Resources, Consol Energy and Arch Resources are among the top 5 highly rated stocks within the group.