In a welcome move, highly-ranked water equipment and services provider Xylem saw its Relative Strength Rating rise from 69 to 76 on Tuesday. The upgraded 76 RS Rating shows that Xylem stock beat 76% of all stocks for price performance this past year. Xylem is just below a buy point.
Additionally, Xylem stock is fast approaching a key benchmark. Research shows that the best stocks typically have an 80 or higher RS Rating in the early stages of their moves. See if Xylem can continue to show renewed price strength and clear that threshold.
Looking For Winning Stocks? Try This Simple Routine
Xylem Stock A Tad Below Buy Point
Xylem stock is working on a cup with handle with a 114.89 entry on a weekly chart. See if the stock can break out in volume at least 40% above average. On Tuesday it closed at 113.76, up fractionally for the day and just below the buy point.
Washington, D.C.-based Xylem makes products for moving, testing, analyzing, treating and recycling water. Among its products are pumps and heating and cooling systems. Last year, Xylem bought Evoqua Water Technologies in an all-stock transaction valued at about $7.5 billion.
Xylem says on its website that the merger created "the world's largest pure-play water technology company, with $7.3 billion in pro forma revenue and more than 22,000 employees globally."
While earnings growth declined in the company's most recently reported quarter from 32% to 14%, or 99 cents per share, revenue grew 50% to $2.08 billion. That was up from 26% growth in the prior report. Keep an eye out for the company's next round of numbers on or around Feb. 6.
Among Top 5 In Industry Group
Xylem holds the No. 2 rank among its peers in the Machinery-Tools & Related industry group, according to IBD Stock Checkup. Electric and power systems equipment maker Lincoln Electric and tools, lighting and plumbing parts and equipment distributor W.W. Grainger are also among the top-five ranked companies in the group.
When looking for the best stocks to buy and watch, it pays to check on relative price strength.
IBD's unique RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the last 52 weeks compares to the rest of the market.
