In a welcome move, Vonage saw its Relative Strength Rating improve from 67 to 74 on Thursday.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

This exclusive rating from Investor's Business Daily measures price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.

History reveals that the best-performing stocks tend to have an 80 or better RS Rating as they begin their biggest climbs. See if Vonage can continue to rebound and hit that benchmark.

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Vonage broke out earlier, but has fallen back below the prior 15.29 entry from a cup with handle. If a stock you're tracking climbs above a buy point then declines 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new consolidation and breakout. Also understand that the most recent consolidation is a later-stage base, and such bases are more prone to failure.

In terms of top and bottom line numbers, the company has posted rising EPS growth in each of the last two reports. Sales growth has also risen over the same time frame.

Vonage earns the No. 2 rank among its peers in the Telecom Services-Wireless industry group. Vonage and P D V Wireless are also among the group's highest-rated stocks.