One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Church & Dwight just hit that mark, with a jump from 78 to 84 Tuesday.
IBD's unique RS Rating measures technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history shows that the best stocks often have an RS Rating north of 80 in the early stages of their moves.
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Church & Dwight broke out earlier, but has fallen back below the prior 113.50 entry from a flat base. 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 understand that the most recent consolidation is a later-stage base, and such bases are more prone to failure.
Church & Dwight showed 18% earnings growth in its most recent report. Revenue increased 4%.
The company earns the No. 1 rank among its peers in the Soap & Cleaning Preparation industry group. Ecolab and Clorox are also among the group's highest-rated stocks.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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