On Tuesday, Commercial Metals earned an upgrade to its Relative Strength (RS) Rating, from 70 to 75.
IBD's unique RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks matched up against all other stocks.
Decades of market research reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they launch their largest climbs. See if Commercial Metals can continue to show renewed price strength and clear that threshold.
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Commercial Metals broke out earlier, but is now trading about 3% below the prior 61.26 entry from a consolidation. If a stock you're watching climbs above a buy point then retreats 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new consolidation and breakout. Also keep in mind that the most recent consolidation is a later-stage base, and such bases are more prone to failure.
Although earnings and sales growth came in at -43% and -10%, respectively, in the latest report, that shows two quarters of improvement for earnings and one for revenue.
Commercial Metals holds the No. 8 rank among its peers in the Metal-Fabricators industry group. Mueller Industries, Northwest Pipe and RBC Bearings are among the top 5 highly rated stocks within the group.
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