Shoals Technologies stock saw a welcome improvement to its Relative Strength (RS) Rating on Friday, rising from 90 to 93.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's proprietary RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the last 52 weeks matches up against other publicly traded companies.
History shows that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating at the beginning of a new price run.
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Is Shoals Technologies Stock A Buy?
The IBD 50 stock is not currently near a potential buying area. See if the stock goes on to form a chart pattern that could launch a new move.
The solar energy firm's top and bottom line growth moved higher last quarter. Earnings were up 43%, compared to -22% in the prior report. Revenue increased from 23% to 52%.
Shoals Technologies stock earns the No. 3 rank among its peers in the Energy-Solar industry group. Enphase Energy and Array Technologies are among the top 5 highly rated stocks within the group.
