When looking for the best stocks to buy and watch, focus on those with rising relative price strength.
One stock that fits that bill is Pinduoduo stock , which saw a welcome improvement to its Relative Strength (RS) Rating on Wednesday, with an upgrade from 86 to 91.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This unique rating identifies technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the last 52 weeks matches up against the rest of the market.
Decades of market research 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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Is Pinduoduo Stock A Buy?
Pinduoduo stock broke out earlier, but is now approximately 3% below the prior 68.81 entry from a cup without 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 base to form. Also keep in mind that the latest pattern is a later-stage base, and such bases are more prone to failure. Also, wait for the stock market outlook to turn up to confirmed uptrend before adding stocks.
Earnings grew 157% last quarter, up from 0% in the prior report. Revenue also increased, from 11% to 31%.
Pinduoduo stock earns the No. 1 rank among its peers in the Retail-Internet industry group. MercadoLibre and Coupang are also among the group's highest-rated stocks. For more industry news, check out "Retail Industry News And Stocks To Watch."
