How can you spot the best stocks to watch — and weed out the laggards? Start by checking IBD’s exclusive Relative Strength (RS) Rating. This telltale metric can help you spot winning stocks in the early stages of a big move.
The RS Rating, ranging from 1 (worst) to 99 (best), measures a stock’s price performance over the last 12 months. The best stocks tend to have an 80 or better RS Rating as they launch a new climb.
Relative Strength Line Vs. RS Rating
Also keep an eye on the relative strength line, which compares a stock’s price performance to that of the S&P 500. An upward trending RS line tells you the stock is outperforming the general market. And it’s a bullish sign when the line is in or near new high ground at the time of a breakout.
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