Campbell Soup had its Relative Strength (RS) Rating upgraded from 79 to 82 Tuesday. Is it M'M M'M Good? Let's take a closer look.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary rating tracks market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against the rest of the market.
History reveals 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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Campbell Soup is building a cup with handle with a 56.14 buy point on a MarketSmith weekly chart. See if the stock can clear the breakout price in volume at least 40% higher than normal.
The daily chart shows an extended handle on a less than perfect cup with handle chart. It is currently finding support at the 21 day moving average. Will it hold that line?
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While the company's top line growth fell last quarter from 15% to 12%, earnings-per-share grew 16%, up from 15% in the previous report. Next earning report is due on June 7.
The company earns the No. 4 rank among its peers in the Food-Packaged industry group. Sovos Brands and General Mills are also among the group's highest-rated stocks.
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