Sonic Automotive Cl A saw a welcome improvement to its Relative Strength (RS) Rating on Friday, rising from 70 to 73.
This exclusive rating from Investor's Business Daily identifies share price performance 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.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating in the early stages of their moves. See if Sonic Automotive Cl A can continue to rebound and clear that threshold.
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Sonic Automotive Cl A broke out earlier, but has fallen back below the prior 64.68 entry from a consolidation. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to take shape. Also keep in mind that the most recent consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
While EPS growth declined in the company's most recently reported quarter from -20% to -38%, the top line rose -4%, up from -5% in the previous report.
Sonic Automotive Cl A earns the No. 10 rank among its peers in the Retail/Wholesale-Auto Parts industry group. ACV Auctions, Group 1 Automotive and Lithia Motors are among the top 5 highly rated stocks within the group.
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