On Thursday, Western Digital got a positive adjustment to its Relative Strength (RS) Rating, from 90 to 93. Despite that, the stock has followed the current market and traded down so far today.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength. IBD's proprietary rating measures share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
History shows that the best-performing stocks tend to have an 80 or higher RS Rating in the early stages of their moves.
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Western Digital is now considered extended and out of buy range after clearing a 41.47 buy point in a first-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line. Of course, with the market in correction, proceed with caution.
WDC Earnings
Western Digital showed 0% earnings growth in the latest quarterly report. Revenue rose -41%.
The company earns the No. 6 rank among its peers in the Computer Software-Storage industry group. Pure Storage Cl A, NetApp and SMART Global Holdings are among the top 5 highly rated stocks within the group.
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