Sleep Number had its Relative Strength (RS) Rating upgraded from 89 to 93 Friday, before the market opened. With disappointing earnings reported yesterday, the stock gapped down over 25% at the open.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's proprietary RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
Over 100 years of market history shows that the best stocks often have an 80 or better RS Rating as they begin their largest price moves.
Looking For Winning Stocks? Try This Simple Routine
Now is not an ideal time to jump in since it isn't near a proper buy zone. With the poor earnings report, we need see if the stock is able to recover and then build a new pattern that would offer a proper buy point.
Sleep Number reported negative growth for both sales and earnings last quarter.
The company holds the No. 9 rank among its peers in the Retail-Home Furnishings industry group. Arhaus, Ethan Allen and Haverty Furniture A are among the top 5 highly rated stocks within the group.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
