When considering what names to put on your watch list, look for stocks with an 80 or higher RS Rating. CF Industries Holdings is one stock that just reached the mark, now earning a score of 82.
This proprietary rating measures technical performance by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
Decades of market research reveals that the market's biggest winners typically have an RS Rating north of 80 as they launch their biggest runs.
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CF Industries Holdings broke out earlier, but has fallen back below the prior 94.46 entry from a flat base. 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 keep in mind that the latest pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
In terms of fundamental health, CF Industries Holdings has posted rising EPS growth in each of the last three reports. Sales growth has also moved higher over the same time frame. The company is expected to release its next quarterly numbers on or around Feb. 19.
The company earns the No. 2 rank among its peers in the Chemicals-Agriculture industry group. CVR Partners is the top-ranked stock within the group.
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