On Tuesday, Gap Inc got another positive adjustment to its Relative Strength (RS) Rating, from 90 to 93.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's proprietary RS Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Decades of market research shows that the best stocks typically have an RS Rating north of 80 at the beginning of a new price run.
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Gap Inc is now considered extended and out of buy range after clearing an 11.74 buy point in a first-stage consolidation. According to a MarketSmith weekly chart. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
GPS Earnings
Earnings growth increased in the company's most recent report from 0% to 325%, but revenue fell from -6% to -8%.
Gap Inc holds the No. 8 rank among its peers in the Retail-Apparel/Shoes/Accessories industry group. lululemon athletica, Abercrombie & Fitch and Urban Outfitters are among the top 5 highly rated stocks within the group.
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