On Tuesday, Novartis ADR received a positive adjustment to its Relative Strength (RS) Rating, from 80 to 83.
IBD's proprietary RS Rating measures technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Decades of market research reveals that the stocks that go on to make the biggest gains often have an RS Rating north of 80 as they launch their biggest runs.
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Novartis ADR broke out earlier, but has fallen back below the prior 112.98 entry from a cup with handle. In the case 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 understand that the latest pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 29%, compared to 18% in the prior report. Revenue increased from 9% to 15%.
The company earns the No. 1 rank among its peers in the Medical-Ethical Drugs industry group. Phibro Animal Health and Protagonist Therapeutics are also among the group's highest-rated stocks.
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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