When looking for the best stocks to buy and watch, focus on those with rising relative price strength.
One stock that fits that bill is AbbVie, which had its Relative Strength (RS) Rating upgraded from 80 to 84 Wednesday. While this is a positive move, note that the RS Line, which is a different measurement, is not really trending higher.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating tracks market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
History reveals that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating as they begin their biggest runs.
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AbbVie is still within a buying range after breaking past a 168.11 buy point in a consolidation pattern on a MarketSmith weekly chart. The proper buying range is up to 5% above the initial entry. Once a stock hits that benchmark, it's best to hold off investing and wait for it to set up another buying opportunity. On the daily chart it looks extended, with a possibility for an entry as it touches the 10-day moving average.
Earnings growth slowed last quarter from -19% to -23%. But revenue moved higher, from -6% to -5%.
AbbVie earns the No. 2 rank among its peers in the Medical-Ethical Drugs industry group. Evolus is also among the group's highest-rated stocks.
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