The Relative Strength (RS) Rating for Catalent climbed into a new percentile Friday, with a big increase from 66 to 83.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating identifies technical performance by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.
History reveals that the market's biggest winners often have an RS Rating of above 80 as they begin their biggest climbs.
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While Catalent is not near a proper entry, especially after the big gap-up from earnings, see if it manages to form and break out of a proper consolidation. Better fundamentals would make it more attractive. Clearing the 200-day moving average would also be a boost to the stock.
Earnings growth rose in the company's latest report from -52% to -26%, but revenue fell from 0% to -6%.
Catalent holds the No. 7 rank among its peers in the Medical-Research Equipment/Services industry group. Medpace Holdings and Charles River Labs Intl are also among the group's highest-rated stocks.
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