On Thursday prior to the open, Chewy reached a key performance benchmark, with its Relative Strength (RS) Rating jumping into the 90-plus percentile with an upgrade to 93, up from 89 the day before.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength. IBD's proprietary rating measures price action with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
Decades of market research shows that the top-performing stocks typically have an 80 or better RS Rating as they begin their largest runs.
See How IBD Helps You Make More Money In Stocks
Chewy is still inside a buying range after moving past a 48.11 entry in a cup with handle. Once a stock moves 5% or higher beyond the original entry, it's considered out of a proper buying area. Despite today's market drop, the stock has held up better than most, almost regaining yesterday's close.
The stock's relative strength line is in new high ground, which is a bullish indicator of technical strength.
Earnings Report
Chewy posted 0% EPS growth in the latest quarterly report, while sales growth came in at 14%. The next earnings report is not until the end of March.
The company earns the No. 6 rank among its peers in the Retail-Internet industry group. MercadoLibre, PDD Holdings ADR and Etsy are among the top 5 highly rated stocks within the group.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
