AT&T saw a welcome improvement to its Relative Strength (RS) Rating on Tuesday, rising from 69 to 75. It does not yet have the best numbers, but it has recently cleared several key moving averages.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary rating tracks share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
Decades of market research reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves. See if AT&T can continue to show renewed price strength and hit that benchmark.
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Now is not an ideal time to jump in since it isn't yet near the proper buy zone. It has given back from an earlier breakout of a cup with handle and now appears to be trying to recreate that move. Let's see if the stock is able to continue moving higher, entering that buying range in heavy trade.
Earnings Watch
In terms of fundamental health, AT&T has posted rising EPS growth over the last two quarters. Revenue growth has also risen during the same period. AT&T is expected to release its next quarterly numbers on or around Apr. 26.
The company earns the No. 2 rank among its peers in the Telecom Servics-Integrated industry group.Charter Communications is also among the group's highest-rated stocks.
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