Aerovironment had its Relative Strength (RS) Rating upgraded from 90 to 93 Thursday.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's unique RS Rating tracks market leadership by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Over 100 years of market history shows that the stocks that go on to make the biggest gains often have an RS Rating of over 80 in the early stages of their moves.
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Aerovironment has risen more than 5% past a 77.69 entry in a first-stage cup with handle formed last October. But much has happened since that pattern formed, meaning it's now out of a proper buy range. Look for the stock to offer a new chance to get in as the market direction turns and new patterns take shape.
While sales growth fell last quarter from 32% to 14%, earnings-per-share grew 129%, up from 63% in the previous report.
The company earns the No. 6 rank among its peers in the Aerospace/Defense industry group. Hexcel, AAR and Heico are among the top 5 highly rated stocks within the group.
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