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 eBay, which had its Relative Strength (RS) Rating upgraded from 76 to 81 Friday.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating measures market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of other stocks on the major indexes.
Decades of market research reveals that the market's biggest winners tend to have an 80 or higher RS Rating as they begin their biggest runs.
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eBay is not currently near a potential buy zone, although it has cleared key moving averages. See if the stock goes on to build a sound pattern that could spark a new run.
Earnings grew 11% last quarter, up from 0% in the prior report. Revenue also increased, from -9% to -5%. Keep an eye out for the company's next round of numbers on or around Feb. 22.
eBay holds the No. 7 rank among its peers in the Retail-Internet industry group. MercadoLibre and Etsy are also among the group's highest-rated stocks.
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