In a welcome move, First Advantage saw its Relative Strength Rating improve from 67 to 71 on Wednesday.
IBD's proprietary RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks compares to the rest of the market.
History shows that the market's biggest winners typically have an RS Rating north of 80 as they begin their largest runs. See if First Advantage can continue to rebound and hit that benchmark.
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First Advantage has risen more than 5% past a 17.49 entry in a first-stage consolidation, meaning it's now out of a proper buy zone. Look for the stock to offer a new chance to get in like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Earnings growth increased last quarter from -13% to -7%, but sales fell from 0% to -1%.
The company earns the No. 7 rank among its peers in the Commercial Services-Staffing industry group. Upwork, Mastech Digital and Barrett Business Services are among the top 5 highly rated stocks within the group.
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