When considering what names to put on your watch list, focus on stocks with an 80 or higher RS Rating. MasterBrand is one stock that just reached the mark, now earning a score of 83.
IBD's proprietary RS Rating measures technical performance by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
History reveals that the top-performing stocks tend to have an RS Rating of over 80 in the early stages of their moves.
Hone Your Stock-Picking Skills By Focusing On These Factors
MasterBrand broke out earlier, but is now trading about 5% below the prior 19.07 entry from a consolidation. In the case 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 form. Also understand 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 decreased in the most recent quarter from 3% to 2%. But sales moved higher, from -6% to -3%. Look for the next report on or around Nov. 5.
The company holds the No. 4 rank among its peers in the Household-Appliances/Hardware industry group. SharkNinja is the No. 1-ranked stock within the group.
RELATED:
IBD Stock Rating Upgrades: Rising Relative Strength
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
