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 Vonage, which had its Relative Strength (RS) Rating upgraded from 78 to 82 Wednesday.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating measures technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
History reveals that the market's biggest winners tend to have an 80 or better RS Rating as they launch their biggest price moves.
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Vonage stock is struggling near a buy zone from a cup with handle pattern. MarketSmith shows this pattern on both daily and weekly charts.
In terms of revenue and profits, Vonage stock has posted two quarters of rising earnings growth. Revenue growth has also moved higher over the same time frame.
The company holds the No. 1 rank among its peers in the Telecom Services-Wireless industry group. While the group iteself is not that strong, Vonage stock does meet 7 of 9 components on the William O'Neil Checklist According to MarketSmith.
