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 steel giant Nucor. On Tuesday its Relative Strength (RS) Rating shot up to 88, an 11-point leap from 77 the day before. Nucor stock rose 4.4% Tuesday to 119.31.
The 88 RS Rating means that shares of Charlotte, N.C.-based Nucor stock have performed in the top 11% of all stocks over the past year. History shows that the top-performing stocks often have an 80 or better RS Rating as they launch their biggest runs.
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Nucor Stock On The Upswing
Nucor earning shot up 92% last quarter to $9.67 per share. Though down from the prior quarter, it continued a string of strong profit-growth quarters.
The prior three stanzas its EPS rose 987%, 518% and 147%. Revenue in its most recent quarter increased 34% to $11.8 billion. Keep an eye out for the company's next round of numbers on or around Oct. 21.
Nucor stock is up about 16% from a 102.86 intraday low on Sept. 26. However, it is not currently offering a proper buying opportunity. See if the stock goes on to build a promising consolidation that could ignite a new run.
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Others In Top 5 In Steel Group
Nucor stock holds the No. 3 rank among its peers in the Steel-Producers industry group, according to MarketSmith. Tenaris and Steel Dynamics are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary Relative Strength Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of other stocks on the major indexes.
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