One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Pinduoduo just hit that mark, with a jump from 77 to 82 Tuesday.
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 market leadership by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.
History reveals that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 as they launch their biggest runs.
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The IBD 50 stock is not currently near a potential buying area. It recently fell back after clearing a 68.71 buy point from a cup pattern as shown on a MarketSmith chart. Yesterday and today it has started to move to the upside, trying to clear key moving averages. One to put on your watchlist as it tries to re-take earlier pivot point.
Pinduoduo saw both earnings and sales growth rise last quarter. Earnings-per-share increased from 0% to 157%. Revenue rose from 11% to 31%.
The company earns the No. 1 rank among its peers in the Retail-Internet industry group.
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