On Thursday, Omnicell reached a key performance benchmark, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 97, up from 89 the day before.
IBD's proprietary RS Rating identifies technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
History reveals that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 as they launch their largest price moves.
How To Use Stock Charts To Stay Profitable And Protected
Omnicell is now considered extended and out of buy range after clearing a 45.84 buy point in a second-stage flat base. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Although earnings and sales growth came in at -10% and -5%, respectively, in the latest report, that marked two straight quarters of acceleration for earnings and two for revenue.
Omnicell holds the No. 14 rank among its peers in the Medical-Systems/Equipment industry group. Intuitive Surgical, Electromed and iRadimed are among the top 5 highly rated stocks within the group.
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