In a welcome move, Advance Auto Parts saw its Relative Strength Rating rise from 63 to 78 on Wednesday.
How To Invest In Stocks In Both Bull And Bear Markets
IBD's unique rating measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
History reveals that the best stocks tend to have an RS Rating of above 80 in the early stages of their moves. See if Advance Auto Parts can continue to rebound and clear that threshold.
Advance Auto Parts broke out earlier, but is now trading around 4% below the prior 50.59 entry from a cup without handle. If a stock you're tracking clears a buy point then falls 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 entry price. Also keep in mind that the latest pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Advance Auto Parts posted 0% earnings growth in its most recent report. Sales rose -7%.
The company earns the No. 7 rank among its peers in the Retail/Wholesale-Auto industry group. Driven Brands, Valvoline and AutoZone 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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