One important metric to look for in a stock is an 80 or higher Relative Strength Rating. McCormick just hit that mark, with a jump from 80 to 84 Tuesday.
This exclusive rating from Investor's Business Daily tracks price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains tend to have an RS Rating of above 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 base to form. Also keep in mind that the most recent pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
While revenue growth fell last quarter from 3% to 0%, the bottom line grew -5%, up from -6% in the prior report.
McCormick holds the No. 5 rank among its peers in the Food-Miscellaneous Preparation industry group. Chefs' Warehouse is the No. 1-ranked stock within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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