When considering what names to put on your watch list, look for stocks with an 80 or higher RS Rating. Summit Materials Cl A just cleared that benchmark with an upgrade from 78 to 82.
IBD's unique RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the trailing 52 weeks matches up against that of all other stocks.
Decades of market research reveals that the best stocks often have an RS Rating of above 80 in the early stages of their moves.
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Summit Materials Cl A has climbed more than 5% past a 42.77 entry in a second-stage consolidation, meaning it's now out of a proper buy range. Look for the stock to offer a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
The company posted -6% earnings growth in the latest quarterly report, while sales growth came in at 53%. The company is expected to report its latest performance numbers on or around Oct. 30.
The company holds the No. 3 rank among its peers in the Building-Cement/Concrete/Aggregates industry group. U.S. Lime & Minerals is the top-ranked stock within the group.
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