Parker Hannifin saw a welcome improvement to its Relative Strength (RS) Rating on Friday, rising from 77 to 81.
This proprietary rating tracks market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks matches up against that of all other stocks.
History shows that the stocks that go on to make the biggest gains often have an 80 or higher RS Rating in the early stages of their moves.
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Parker Hannifin broke out earlier, but has fallen back below the prior 712.42 entry from a cup without handle. 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 keep in mind that the latest pattern is a later-stage base, and those involve more risk.
While sales growth fell last quarter from 1% to -2%, the bottom line grew 6%, up from 4% in the previous report.
The company holds the No. 5 rank among its peers in the Machinery-General Industrial industry group. ESCO Technologies is the No. 1-ranked stock within the group.
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