Bank of Montreal saw a positive improvement to its Relative Strength (RS) Rating on Tuesday, with an upgrade from 78 to 82.
This unique rating measures technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of other stocks on the major indexes.
Decades of market research shows that the stocks that go on to make the biggest gains often have an RS Rating north of 80 in the early stages of their moves.
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Bank of Montreal broke out earlier, but is now approximately 5% below the prior 101.55 entry from a double bottom. If a stock you're tracking clears a buy point then retreats 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new chart pattern and buy point. Also understand that the latest consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 19%, compared to -35% in the prior report. Revenue increased from 8% to 21%.
The company earns the No. 17 rank among its peers in the Banks-Money Centers industry group. Banco Bilbao Vizcaya ADR, Barclays ADR and Bk of NY Mellon 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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