On Friday, Enphase Energy cleared an important performance benchmark, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 94, up from 88 the day before.
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 market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history shows that the stocks that go on to make the biggest gains tend to have an 80 or higher RS Rating as they begin their largest price moves.
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The stock, which is on both the IBD 50 and IBD Sector Leaders screens, is within a buy range after moving past a 193.00 entry in a double bottom. Once a stock moves 5% or higher beyond the initial entry, it's considered out of buy range.
Enphase Energy reported 41% EPS growth in its most recent report. Revenue gains came in at 46%.
The company earns the No. 1 rank among its peers in the Energy-Solar industry group. Daqo New Energy and Jinko Solar are also among the group's highest-rated stocks.
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