Stocks With Rising Relative Strength: Automatic Data Processing
Automatic Data Processing had its Relative Strength (RS) Rating upgraded from 69 to 74 Thursday -- a welcome improvement, but still shy of the 80 or higher score you look for.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
This proprietary rating measures market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks matched up against all other stocks.
Over 100 years of market history shows that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves. See if Automatic Data Processing can continue to rebound and hit that benchmark.
Automatic Data Processing has risen more than 5% past a 182.42 entry in a first-stage consolidation, meaning it's now out of a proper buy zone. Look for the stock to create a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Automatic Data Processing saw both earnings and sales growth rise last quarter. Earnings-per-share increased from -2% to 5%. Revenue rose from 1% to 11%.
The company holds the No. 11 rank among its peers in the Commercial Services-Outsourcing industry group. Teletech and Trinet are also among the group's highest-rated stocks.