One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Webster Financial now clears that threshold, with a jump from 71 to 81 Wednesday.
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IBD's unique RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the last 52 weeks matches up against that of all other stocks.
Decades of market research shows that the stocks that go on to make the biggest gains often have an RS Rating of above 80 as they begin their biggest price moves.
Webster Financial is still within a buy zone after breaking past a 55.36 entry in a cup with handle. The proper buying range is up to 5% above the initial entry. Once a stock hits that benchmark, it's best to hold off investing and wait for it to set up another buying opportunity.
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up -4%, compared to -20% in the prior report. Revenue increased from 4% to 6%. Keep an eye out for the company's next round of numbers on or around Jul. 17.
Webster Financial holds the No. 38 rank among its peers in the Banks-Northeast industry group. Capital Bancorp, Unity Bancorp and Ponce Financial Group 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.
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