One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Pinduoduo now clears that threshold, with a jump from 68 to 86 Thursday.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This unique rating tracks technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
Over 100 years of market history shows that the best stocks tend to have an RS Rating of over 80 as they launch their biggest price moves.
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While the stock is not near a proper buy point right now, see if it manages to form and break out from a proper base. It has recently passed most moving averages, with only the 200-day showing resistance. But a slight uptrend shows on a MarketSmith daily chart
Earnings grew 304% last quarter, up from 0% in the prior report. Revenue also increased, from 5% to 11%.
The company holds the No. 1 rank among its peers in the Retail-Internet industry group.
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