The Relative Strength (RS) Rating for Builders Firstsource jumped into a new percentile Tuesday, as it got a lift from 69 to 79.
When you're researching the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique RS Rating identifies 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 above 80 as they launch their biggest climbs. See if Builders Firstsource can continue to show renewed price strength and hit that benchmark.
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Builders Firstsource is now considered extended and out of buy range after clearing a 52.82 buy point in a second-stage cup with handle last year. See if the stock forms a new chart pattern or follow-on buying opportunity like a three-weeks tight.
Earnings growth rose last quarter from 116% to 175%, but the top line fell from 83% to 36%.
The company earns the No. 7 rank among its peers in the Building-Construction Products/Miscellaneous industry group. Griffon and Cornerstone Bld Brands are also among the group's highest-rated stocks.
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