When putting together your watch list, focus on stocks with an 80 or higher RS Rating. McCormick is one stock that just reached the mark, now earning a score of 82.
IBD's proprietary rating measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
History reveals that the best-performing stocks typically have an RS Rating north of 80 in the early stages of their moves.
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McCormick broke out earlier, but has fallen back below the prior 82.20 entry from a double bottom. 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 pattern to take shape. Also understand that the latest pattern is a later-stage base, and such bases are more prone to failure.
Earnings growth decreased last quarter from 28% to -6%. But sales moved higher, from 0% to 3%.
The company holds the No. 2 rank among its peers in the Food-Miscellaneous Preparation industry group. Chefs' Warehouse is the No. 1-ranked stock within the group.
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