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 Peloton Interactive. On Wednesday, the Relative Strength (RS) Rating for Peloton stock climbed to 82, putting it in the top 18% of all stocks for price performance.
Peloton stock soared like an eagle after it went public in September 2019. Its exercise machines combined with live coaches and taped programs were popular. When Covid broke out and people were forced to stay home, it flew higher. As quickly at it rose, it crashed. Peloton traded around 25 per share at the end of 2019. It shot up about 580% to an intraday high 171.09 on Jan 15, 2021. It then plunged to 6.66 on Oct. 3 last year.
On Wednesday, it rose about 1.4% to close at 13.43. It's still a long way from its all-time high, but it's a notable accomplishment that it doubled in under five months.
History shows that the top-performing stocks often have an RS Rating north of 80 in the early stages of their moves.
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Peloton Interactive has moved more than 5% past a 12.24 entry in a first-stage cup with handle, meaning it's now out of a proper buy zone. Look for the stock to create a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week moving average.
The company posted 0% earnings growth in its most recent report. Revenue rose -30%.
Peloton Interactive earns the No. 30 rank among its peers in the Leisure-Services industry group. Marriott Vacations and Hilton Grand Vacations are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating identifies technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of other stocks on the major indexes.
