On Monday, Old Republic Intl reached a noteworthy technical benchmark, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 83, up from 80 the day before.
IBD's proprietary RS Rating identifies 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.
Over 100 years of market history reveals that the best stocks typically have an RS Rating north of 80 as they launch their biggest runs.
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Old Republic Intl broke out earlier, but has fallen back below the prior 37.09 entry from a cup without handle. If a stock you're tracking clears a buy point then falls 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new chart pattern and entry price. Also keep in mind 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 rose last quarter from -1% to 30%, but revenue fell from 33% to 3%.
The company holds the No. 11 rank among its peers in the Insurance-Property/Casualty/Title industry group. Skyward Specialty Ins, Goosehead Insurance Cl A and Intl General Insurance are among the top 5 highly rated stocks within the group.
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