One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Market research shows that the market's biggest winners often have an RS Rating of above 80 as they begin their biggest runs. Dick's Sporting Goods just hit that mark on Wednesday, with an 11-point jump to 81, up from 70 the day before.
Dick's Sporting Goods' Other Ratings Healthy
The new 81 RS Rating means that Dick's Sporting Goods has outperformed 81% of all stocks in terms of price performance over the past year.
Among its other key ratings, Dick's boasts a 95 EPS Rating, of a best-possible 99. The 95 rating points to strong recent and long-term profit growth. Its 86 Composite Rating puts Dick's Sporting Goods in the top 14% of stocks measured by a group of five key metrics. Another bullish indicator is its B Accumulation/Distribution Rating, on an A+ to E scale, indicating fairly strong buying by mutual funds and other institutional investors.
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The company posted 50% earnings growth in its most recent report, to $3.64 per share. That came on a mild 7% increase in sales to $3.35 billion.
Dick's stock has risen about 16% from a Feb. 24 low of 92.31 and was trading around 107 Wednesday afternoon, down fractionally for the day. Now is not an ideal time to jump into Dick's Sporting Goods since it isn't near a proper buy zone, but see if the watchlist candidate goes on to offer and clear an appropriate buy point.
No. 2 In Retail Group
Dick's Sporting Goods earns the No. 2 rank among its peers in the Retail-Leisure Products group. Build-A-Bear Workshop and Academy Sports & Outdoors are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This unique Relative Strength Rating tracks market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
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