On Thursday, Aon got a positive adjustment to its Relative Strength (RS) Rating, from 80 to 83.
This proprietary rating measures market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks matches up against other publicly traded companies.
History shows that the stocks that go on to make the biggest gains typically have an 80 or higher RS Rating as they begin their biggest runs.
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Aon broke out earlier, but has fallen back below the prior 395.33 entry from a cup without handle. In the scenario 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 form. Also keep in mind that the latest pattern is a later-stage base, and such bases are more prone to failure.
The company posted 14% earnings growth last quarter. Sales gains came in at 23%.
Aon holds the No. 2 rank among its peers in the Insurance-Brokers industry group. Ryan Specialty Holdings is the No. 1-ranked stock within the group.
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