One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Otis Worldwide just hit that mark, with a jump from 79 to 82 Tuesday.
IBD's unique rating measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks compares to all the other stocks in our database.
History shows that the best stocks often have an 80 or higher RS Rating as they begin their biggest runs.
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Otis Worldwide broke out earlier, but is now trading around 3% below the prior 106.33 entry from a cup without handle. If a stock you're tracking clears a buy point then falls 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 consolidation and breakout. Also keep in mind 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.
Earnings grew 7% last quarter, up from 1% in the prior report. Revenue also increased, from 1% to 2%. The next quarterly numbers are expected on or around Apr. 23.
The company earns the No. 11 rank among its peers in the Machinery-General Industrial industry group. ESCO Technologies, DXP Enterprises and Energy Recovery 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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