Alcoa saw a welcome improvement to its Relative Strength (RS) Rating on Monday, with an increase from 89 to 93.
This exclusive rating from Investor's Business Daily identifies price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history shows that the market's biggest winners tend to have an RS Rating north of 80 at the beginning of a new climb.
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Alcoa broke out earlier, but is now trading about 5% below the prior 45.48 entry from a consolidation. If a stock you're tracking clears a buy point then falls 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new base and buy point. Also keep in mind that the latest pattern is a later-stage base, and such bases are more prone to failure.
Alcoa showed 0% EPS growth in its most recent report, while sales growth came in at 12%.
The company holds the No. 1 rank among its peers in the Mining-Metal Ores industry group. Southern Copper and Cameco are also among the group's highest-rated stocks.
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