One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Johnson Controls Intl cleared that benchmark Thursday, with a jump from 80 to 87 Thursday.
This proprietary rating measures technical performance by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.
History shows that the market's biggest winners tend to have an RS Rating of over 80 as they begin their biggest climbs.
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Johnson Controls Intl broke out earlier, but has fallen back below the prior 87.16 entry from a flat base. If a stock you're tracking climbs above a buy point then declines 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new pattern and breakout. Also keep in mind that the latest consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Earnings growth rose last quarter from 22% to 39%. But sales fell from 7% to 4%.
The company earns the No. 2 rank among its peers in the Diversified Operations industry group. Roper Technologies is the No. 1-ranked stock within the group.
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