On Friday, GFL Environmental hit a key performance benchmark, with its Relative Strength (RS) Rating rising into the 80-plus percentile with an upgrade to 85, up from 80 the day before.
IBD's proprietary RS 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 stocks that go on to make the biggest gains typically have an RS Rating of at least 80 in the early stages of their moves.
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GFL Environmental is now considered extended and out of buy range after clearing a 43.79 buy point in a first-stage cup without handle. 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 line.
In terms of fundamental health, the company has posted two quarters of increasing earnings growth. Revenue gains have also moved higher during the same period.
GFL Environmental earns the No. 8 rank among its peers in the Pollution-Control industry group. Aris Water Solutions, Perma-Pipe Intl and Clean Harbors are among the top 5 highly rated stocks within the group.
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