AbbVie saw a welcome improvement to its Relative Strength (RS) Rating on Tuesday, with an upgrade from 65 to 71. It is currently trying to break through moving averages, which may be seen as overhead resistance.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary rating identifies share price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
History shows that the market's biggest winners tend to have an RS Rating of at least 80 in the early stages of their moves. See if AbbVie can continue to rebound and hit that benchmark.
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AbbVie is building a consolidation according to the weekly chart action on MarketSmith, with a 168.11 buy point. See if the stock can clear the breakout price in heavy volume. Keep in mind it is trying to recover from a failed breakout of a daily cup with handle chart.
ABBV Earnings
Although earnings and sales growth came in at -14% and -5%, respectively, in the latest report, that showed improvement for both the top and bottom lines. AbbVie is expected to release its next quarterly numbers on or around Oct. 27.
The company holds the No. 6 rank among its peers in the Medical-Ethical Drugs industry group. Zoetis and Novartis ADR are also among the group's highest-rated stocks.
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