One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Infosys ADR cleared that benchmark Friday, with a jump from 79 to 84 Friday.
This proprietary rating identifies technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
History reveals that the top-performing stocks tend to have an RS Rating of at least 80 in the early stages of their moves.
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Infosys ADR broke out earlier, but is now trading around 4% below the prior 23.48 entry from a flat base. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to form. Also understand that the most recent consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
The company showed 6% earnings growth last quarter, while sales growth came in at 4%. The company is expected to report its latest numbers on or around Jan. 16.
Infosys ADR earns the No. 19 rank among its peers in the Computer-Technical Services industry group. Gorilla Technology Group, Dave and Globant are among the top 5 highly rated stocks within the group.
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