On Wednesday, Cardinal Health stock got a positive adjustment to its Relative Strength (RS) Rating, from 69 to 78.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.
Decades of market research reveals that the stocks that go on to make the biggest gains tend to have an 80 or higher RS Rating in the early stages of their moves. See if Cardinal Health stock can continue to rebound and clear that threshold.
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Is Cardinal Health Stock A Buy?
Cardinal Health broke out earlier, but is now trading approximately 4% below the prior 108.39 entry from a cup with handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to take shape. Also keep in mind that the most recent consolidation is a later-stage base, and those involve more risk.
While the company's bottom line growth fell in the prior quarter from 44% to 38%, sales grew 12%, up from 10% in the previous report.
Cardinal Health stock earns the No. 3 rank among its peers in the Medical-Wholesale Drugs industry group. PetIQ Cl A and Cardinal Health are also among the group's highest-rated stocks.
