Fortis saw a positive improvement to its Relative Strength (RS) Rating on Tuesday, rising from 77 to 82.
This unique rating identifies technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks matches up against that of all other stocks.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains often have an RS Rating of above 80 in the early stages of their moves.
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Fortis broke out earlier, but has fallen back below the prior 45.44 entry from a cup without handle. If a stock you're tracking climbs above a buy point then declines 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new pattern and breakout. 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.
The company reported 15% earnings growth in the latest quarterly report, while sales growth came in at 2%.
Fortis holds the No. 12 rank among its peers in the Utility-Diversified industry group. Ameren Corp, Chesapeake Utilities and Alliant Energy are among the top 5 highly rated stocks within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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