When looking for the best stocks to buy and watch, focus on those with rising relative price strength.
One stock that fits that bill is Lululemon Athletica, which had its Relative Strength (RS) Rating upgraded from 72 to 84 Friday.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary rating measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks compares to all 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.
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Lululemon Athletica is now considered extended and out of buy range after clearing a 386.00 buy point in a first-stage cup with handle. 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 moving average.
The company reported 123% EPS growth in its most recent report. Revenue gains came in at 61%.
The company earns the No. 2 rank among its peers in the Retail-Apparel/Shoes/Accessories industry group. Lululemon Athletica and Revolve Group are also among the group's highest-rated stocks.
