The Relative Strength (RS) Rating for Caterpillar stock jumped into a new percentile Thursday, with an increase from 80 to 85.
The construction equipment maker recently announced they will invest $24 million to expand its manufacturing facility in Schertz, TX. The Schertz facility currently machines engine blocks and cylinder heads for various Caterpillar products.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against that of all other stocks.
Over 100 years of market history reveals that the market's biggest winners typically have an RS Rating north of 80 as they launch their biggest price moves.
Looking For Winning Stocks? Try This Simple Routine
Is Caterpillar Stock A Buy?
Caterpillar is building a year-long consolidation trading between a range of 180 and 247. See if it can break out above its 246.79 buy point with above average volume. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
The company reported 0% earnings growth in its most recent report, while sales growth came in at 14%.
Caterpillar stock earns the No. 1 rank among its peers in the Machinery-Construction/Mining industry group.
