One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Valero Energy just hit that mark, with a jump from 77 to 82 Friday.
Risk Management In The Stock Market: How Much Money To Invest Now
This proprietary rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.
History shows that the top-performing stocks often have an 80 or better RS Rating as they begin their biggest climbs.
Valero Energy has climbed more than 5% past a 142.51 entry in a second-stage cup with handle, meaning it's now out of a proper buy zone. Look for the stock to offer a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Although earnings and sales growth came in at -77% and -5%, respectively, in the latest report, that marked two straight quarters of acceleration for earnings and two for revenue. Valero Energy is expected to release its next quarterly numbers on or around Jul. 24.
The company earns the No. 9 rank among its peers in the Oil & Gas-Refining/Marketing industry group. UGI, Targa Resources and Global Partners 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.
RELATED:
Stocks With Rising Relative Strength Ratings
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
