One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Flowserve stock just hit that mark, with a jump from 76 to 86 Wednesday.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against the rest of the market.
History shows that the best stocks often have an RS Rating of above 80 as they launch their biggest climbs.
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Is Flowserve Stock A Buy?
Flowserve stock is within a buy zone after moving past a 35.19 entry in a cup with handle. The proper buying range is up to 5% above the initial entry. Once a stock moves above that range, it's best to wait for it to set up another buying opportunity.
Taking a look at revenue and profit performance, the company has posted two quarters of increasing earnings growth. Sales growth has also increased over the same time frame.
Flowserve stock holds the No. 2 rank among its peers in the Machinery-General Industrial industry group. Flowserve and Graham Corp are also among the group's highest-rated stocks.
