On Tuesday, Playa Hotels & Resorts hit an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 94, up from 80 the day before.
IBD's proprietary rating tracks share price action with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
History shows that the stocks that go on to make the biggest gains often have an RS Rating of at least 80 in the early stages of their moves.
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Playa Hotels & Resorts has risen more than 5% past a 9.85 entry in a first-stage cup without handle, meaning it's now out of a proper buy range. Look for the stock to offer a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Earnings growth increased last quarter from -14% to 0%. But revenue gains fell from -5% to -14%.
The company earns the No. 5 rank among its peers in the Leisure-Lodging industry group. Atour Lifestyle Hldgs ADR is the top-ranked stock within the group.
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