When looking for the best stocks to buy and watch, focus on those with rising relative price strength.
One stock that fits that bill is Steel Dynamics, which had its Relative Strength (RS) Rating upgraded to 84. The steel maker has been performing well as the industry continues to see demand in the construction and automotive sectors. The steel industry is cyclical, thus prices can retract quickly due to extra supply.
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 market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
Decades of market research reveals that the best stocks typically have an 80 or higher RS Rating as they launch their biggest price moves.
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Is Steel Dynamics Stock A Buy?
Steel Dynamics stock is currently in a double-bottom base with a 68.27 entry point. See if the stock reaches that buy zone on above average volume. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips. Also, check out "Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks."
In terms of top and bottom line numbers, the company has posted five quarters of accelerating earnings growth. Sales growth has also increased over the same time frame.
The company has a 91 Composite Rating and holds the No. 2 rank among its peers in the Steel-Producers industry group. Steel Dynamics and Nucor are also among the group's highest-rated stocks.
