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 TopBuild, which had its Relative Strength (RS) Rating upgraded from 80 to 83 Friday.
When you're researching the best stocks to buy and watch, keep a close on eye on relative price strength.
This exclusive rating from Investor's Business Daily measures share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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.
Looking For Winning Stocks? Try This Simple Routine
TopBuild stock broke out earlier, but has fallen back below the prior 229.99 entry from a cup with 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 base and entry price.
In terms of fundamental health, TopBuild stock has posted four quarters of increasing earnings growth. Sales gains have also moved higher during the same period.
TopBuild earns the No. 3 rank among its peers in the Building-Construction Products/Miscellaneous industry group. Builders Firstsource is also among the group's highest-rated stocks.
