On Tuesday, Viatris earned a positive adjustment to its Relative Strength (RS) Rating, from 70 to 74.
IBD's proprietary RS Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
Decades of market research shows that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 in the early stages of their moves. See if Viatris can continue to show renewed price strength and clear that threshold.
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Viatris broke out earlier, but has fallen back below the prior 12.77 entry from a cup with handle. If a stock you're tracking climbs above a buy point then retreats 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 pattern and breakout. Also understand 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.
In terms of revenue and profits, the company has posted two quarters of increasing earnings growth. Top line growth has been less impressive, coming in at -5% in the most recent report.
The company earns the No. 4 rank among its peers in the Medical-Generic Drugs industry group. Teva Pharmaceutical ADR is the No. 1-ranked stock within the group.
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