On Tuesday, Best Buy stock received an upgrade to its Relative Strength (RS) Rating, from 76 to 81.
IBD's proprietary RS Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
History reveals that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating as they launch their biggest price moves.
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Is Best Buy Stock A Buy?
Best Buy stock rallied almost 20% over several trading days after posting positive quarterly results. The electronics retail stock is within a buy range after climbing above an 86.11 buy point in a cup without handle. Once a stock moves 5% or higher beyond the original entry, it's considered extended and out of buy range.
In terms of top and bottom line numbers, Best Buy has posted four quarters of rising earnings growth. Sales growth has been a different story, coming in at -7% last quarter.
Best Buys stock earns the No. 1 rank among its peers in the Retail-Consumer Electronics industry group. GameStop Cl A and ATRenew are also among the group's highest-rated stocks.
