On Thursday, Plug Power reached a key technical benchmark, with its Relative Strength (RS) Rating jumping into the 90-plus percentile with an improvement to 90, up from 79 the day before. Today, Friday, the stock held at the open, dropping only slightly. Since then it has moved up, showing a 2% increase at the time of publication.
Keep in mind the RS Line is still on a downward trend. Also note that today is the final day of the third quarter.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength. This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains typically have an RS Rating of over 80 in the early stages of their moves.
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Plug Power is now considered extended and out of buy range after clearing a 14.45 buy point in a second-stage consolidation, although that is an old pattern. Let's see if the stock can form a new pattern or follow-on buying opportunity like a three-weeks tight after clearing the overhead moving averages.
Earnings News
Plug Power reported -66% EPS growth in the latest quarterly report, while sales growth came in at 21%.
The company holds the No. 23 rank among its peers in the Energy-Alternative/Other industry group. Ameresco, Arcosa and Montauk Renewables are among the top 5 highly rated stocks within the group.
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