When putting together your watch list, focus on stocks with an 80 or higher RS Rating. Canadian Solar just met that criteria with a new score of 85.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matches up against the rest of the market.
Decades of market research shows that the best-performing stocks typically have an 80 or better RS Rating as they begin their biggest climbs.
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According to a MarketSmith chart, Canadian Solar stock is building a large double bottom pattern with a 38.53 buy point. See if it can clear the breakout price in heavy trade.
The company posted -61% earnings growth in the latest quarterly report, while sales growth came in at 15%.
Canadian Solar holds the No. 5 rank among its peers in the Energy-Solar industry group. Enphase Energy and Jinko Solar are also among the group's highest-rated stocks.
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