One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Bank of Montreal now clears that threshold, with a jump from 80 to 86 Thursday.
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This unique rating identifies technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of other stocks on the major indexes.
History reveals that the stocks that go on to make the biggest gains tend to have an 80 or higher RS Rating in the early stages of their moves.
Bank of Montreal is remains in a buy zone after clearing a 106.00 buy point in a cup without handle. The proper buying range is up to 5% above the initial entry. Once a stock hits that benchmark, it's best to wait for it to set up another buying opportunity..
The relative strength has entered new high ground, a sign the stock is outperforming the general market in terms of price performance. .
Bank of Montreal showed 1% earnings growth in the latest quarterly report. Sales rose 9%.
The company holds the No. 12 rank among its peers in the Banks-Money Centers industry group. NatWest Group ADR, Royal Bank of Canada and Barclays ADR 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.
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