One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Automatic Data Processing stock cleared that benchmark Thursday, with a jump from 78 to 81 Thursday.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique rating measures price action with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
History shows that the top-performing stocks often have an 80 or better RS Rating as they launch their biggest runs.
Looking For Winning Stocks? Try This Simple Routine
Is Automatic Data Processing Stock A Buy?
Automatic Data Processing stock is building a cup without handle with a 249.06 entry. See if it can break out in heavy volume. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
The company posted 9% earnings growth in its most recent report, while sales growth came in at 9%. Look for the next report on or around Apr. 28.
Automatic Data Processing stock earns the No. 6 rank among its peers in the Commercial Services-Outsourcing industry group. Exlservice and Cintas are also among the group's highest-rated stocks.
