When looking for the best stocks to buy and watch, focus on those with rising relative price strength.
One stock that fits that bill is Caterpillar stock, which had its Relative Strength (RS) Rating upgraded from 78 to 81 Friday.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength.
This exclusive rating from Investor's Business Daily tracks price action with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
History reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they begin their biggest climbs.
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Is Caterpillar Stock A Buy?
Caterpillar stock is building a consolidation with a 246.79 buy point. See if the stock can break out in volume at least 40% higher than normal. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
The construction machinery firm posted 27% EPS growth in its most recent report, while sales growth came in at 23%. The company is expected to report its latest numbers on or around Apr. 29.
Caterpillar stock earns the No. 1 rank among its peers in the Machinery-Construction/Mining industry group.
