One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Avient now clears that threshold, with a jump from 80 to 83 Thursday.
IBD's unique RS Rating measures technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of other stocks on the major indexes.
Decades of market research shows that the market's biggest winners tend to have an 80 or higher RS Rating as they begin their biggest runs.
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Avient broke out earlier, but has fallen back below the prior 51.51 entry from a flat base. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to take shape. Also keep in mind that the most recent pattern is a later-stage base, and those involve more risk.
Earnings growth fell in the most recent report from 21% to 14%. But revenue gains moved higher, from 3% to 8%.
The company holds the No. 3 rank among its peers in the Chemicals-Plastics industry group. AdvanSix is the No. 1-ranked stock within the group.
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