On Monday, CNH Industrial received a positive adjustment to its Relative Strength (RS) Rating, from 66 to 79.
IBD's unique RS Rating tracks market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the last 52 weeks matched up against all other stocks.
History shows that the stocks that go on to make the biggest gains often have an 80 or higher RS Rating as they begin their biggest runs. See if CNH Industrial can continue to show renewed price strength and clear that threshold.
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CNH Industrial broke out earlier, but is now about 4% below the prior 12.76 entry from a cup with handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to take shape. Also keep in mind that the latest consolidation is a later-stage base, and those involve more risk.
The company reported negative growth for both sales and earnings last quarter.
The company holds the No. 1 rank among its peers in the Machinery-Construction/Mining industry group. CNH Industrial and Astec Industries are also among the group's highest-rated stocks.
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