When building your watch list, focus on stocks with an 80 or higher RS Rating. RH stock just met that criteria with a new score of 81.

As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.

IBD's unique rating measures share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.

Decades of market research reveals that the market's biggest winners often have an RS Rating of above 80 in the early stages of their moves.

See How IBD Helps You Make More Money In Stocks

Is RH Stock A Buy?

RH stock had a failed breakout of a cup with handle base in early August. Since then, the stock has been trading sideways and is not currently offering a proper buying opportunity. See if the stock goes on to build a chart pattern that could spark a new run. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips. Also, check out "Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks."

The luxury home furnishings retailer posted 73% EPS growth in its most recent report. Revenue increased 39%.

RH stock holds the No. 2 rank among its peers in the Retail-Home Furnishings industry group. RH and Lovesac are also among the group's highest-rated stocks.