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 Nucor, which saw a positive improvement to its Relative Strength (RS) Rating on Wednesday, rising from 89 to 92. It was also added to the IBD 50 Watchlist yesterday after the market closed.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's proprietary RS Rating measures 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.
Decades of market research shows that the best stocks typically have an RS Rating north of 80 in the early stages of their moves.
Looking For Winning Stocks? Try This Simple Routine
The IBD 50 stock has moved more than 5% past a 126.77 entry in a second-stage double bottom, meaning it's now out of a proper buy range. Note that this is a somewhat old pattern from earlier this year. Look for the stock to create a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week moving average with increasing volume.
Earnings Update
The company reported 92% earnings growth last quarter. Sales gains came in at 34%.
The company holds the No. 3 rank among its peers in the Steel-Producers industry group. Steel Dynamics and Tenaris are among the top 5 highly rated stocks within the group.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
