On Thursday, Vale stock reached a key technical benchmark, with its Relative Strength (RS) Rating climbing into the 80-plus percentile with an improvement to 83, an increase from 76 the day before.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
This exclusive rating from Investor's Business Daily identifies price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history reveals that the best stocks often have an 80 or higher RS Rating as they begin their biggest price moves.
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Is Vale Stock A Buy?
Vale stock broke out of a cup-with-handle pattern back in January, but has pulled back since then. While the mining stock is not near an ideal entry right now, see if it goes on to form and break out of a proper consolidation.
While the mining company's bottom line growth dropped in the prior quarter from 29% to -23%, the top line grew -9%, up from -19% in the previous report.
Vale stock holds the No. 3 rank among its peers in the Mining-Metal Ores industry group. Southern Copper and Vale ADR are also among the group's highest-rated stocks.
