On Wednesday, DaVita stock cleared a key technical benchmark, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 91, up from 78 the day before.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This proprietary rating identifies market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against the rest of the market.
History reveals that the best stocks tend to have an 80 or better RS Rating at the beginning of a new price run.
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Is DaVita Stock A Buy?
DaVita stock has climbed more than 5% past a 91.28 entry in a first-stage cup with handle, meaning it's now out of a proper buy range. Look for the stock to offer a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
The company saw both earnings and sales growth rise last quarter. Earnings-per-share increased from -45% to -4%. Revenue rose from -1% to 2%.
DaVita stock holds the No. 3 rank among its peers in the Medical-Outpatient/Home Care industry group. Encompass Health and DaVita are among the top 5 highly rated stocks within the group.
