In a welcome move, Rockwell Automation saw its Relative Strength Rating rise from 63 to 72 on Wednesday.
IBD's proprietary rating measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
History reveals that the best-performing stocks tend to have an 80 or better RS Rating in the early stages of their moves. See if Rockwell Automation can continue to rebound and clear that threshold.
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Rockwell Automation broke out earlier, but has fallen back below the prior 304.29 entry from a flat base. 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 understand that the latest pattern is a later-stage base, and such bases are more prone to failure.
Although earnings and sales growth came in at -10% and -8%, respectively, in the latest report, that showed improvement for both the top and bottom lines.
Rockwell Automation holds the No. 13 rank among its peers in the Electrical Power/Equipment industry group. American Superconductor, Vertiv Holdings and AZZ are among the top 5 highly rated stocks within the group.
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