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 GameStop stock, which had its Relative Strength (RS) Rating upgraded from 80 to 89 Thursday.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating measures technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the last 52 weeks matches up against the rest of the market.
History reveals that the best stocks typically have an 80 or better RS Rating in the early stages of their moves.
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Is GameStop Stock A Buy?
GameStop stock broke out earlier, but has fallen back below the prior 26.55 entry from a cup with handle. If a stock you're tracking clears a buy point then retreats 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new chart pattern and buy point. Also understand that the latest pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
The gaming retailer showed 0% EPS growth in the latest quarterly report. Sales rose -10%.
GameStop stock holds the No. 2 rank among its peers in the Retail-Consumer Electronics industry group. Best Buy and are also among the group's highest-rated stocks.
