It took a couple of days, but finally today before the market opened Norwegian Cruise Line reached an important technical milestone, with its Relative Strength (RS) Rating rising into the 80-plus percentile with an improvement to 84, an increase from 80 the day before.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the last 52 weeks matches up against other publicly traded companies.
Over 100 years of market history shows that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating as they begin their biggest runs.
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Norwegian Cruise Line is working on a cup without handle with an 18.12 buy point. It has continued to rise while building the right side, although today it is seeing a small pull-back. Now we need to see if it can break out in heavy trading.
NCLH Earnings
The company reported 0% earnings growth in its most recent report. Revenue gains came in at a lofty 249%.
Norwegian Cruise Line holds the No. 8 rank among its peers in the Leisure-Services industry group. Royal Caribbean Group and Life Time Group Holdings are also among the group's highest-rated stocks.
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