One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Monster Beverage now clears that threshold, with a jump from 78 to 83 Tuesday before the market open.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating measures market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
Decades of market research reveals that the market's biggest winners tend to have an RS Rating of above 80 as they begin their biggest climbs.
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Monster Beverage is working on a flat base with a 99.91 entry. This follows an unsuccessful break from a double-bottom base. See if the stock can break out in volume at least 40% above average.
The company posted -32% earnings growth last quarter, while sales growth came in at 13%.
The company holds the No. 8 rank among its peers in the Beverages-Non-Alcoholic industry group. Coca Cola Femsa and Coca Cola are also among the group's highest-rated stocks.
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