On Monday, Crocs stock hit an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 80, up from 63 the day before.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the last 52 weeks matches up against the rest of the market.
Over 100 years of market history reveals that the best-performing stocks tend to have an RS Rating of above 80 in the early stages of their moves.
See How IBD Helps You Make More Money In Stocks
Is Crocs Stock A Buy?
Crocs stock broke out earlier, but has fallen back below the prior 83.74 entry from a consolidation. If a stock you're watching clears 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 latest consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
Earnings growth dropped in the most recent quarter from 45% to 20%. But revenue gains moved higher, from 51% to 57%.
Crocs stock earns the No. 1 rank among its peers in the Apparel-Shoes & Related industry group. Deckers Outdoor is also a leader in the apparel-shoes segment.
