PriceSmart saw a welcome improvement to its Relative Strength (RS) Rating on Tuesday, rising from 65 to 74.
This proprietary rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matched up against all other stocks.
Over 100 years of market history reveals that the best-performing stocks typically have an RS Rating of over 80 in the early stages of their moves. See if PriceSmart can continue to rebound and clear that threshold.
When To Sell Stocks To Lock In Profits And Minimize Losses
PriceSmart broke out earlier, but has fallen back below the prior 94.82 entry from a flat base. If a stock you're tracking clears a buy point then falls 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 base and entry price. Also keep in mind that the most recent pattern is a later-stage base, and those involve more risk.
Earnings growth moved up last quarter from 4% to 45%, but the top line fell from 12% to 10%. Keep an eye out for the company's next round of numbers on or around Jan. 9.
PriceSmart holds the No. 2 rank among its peers in the Retail-Major Discount Chains industry group. Walmart is the No. 1-ranked stock within the group.
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