On Monday, Red Rock Resorts stock hit a key performance benchmark, with its Relative Strength (RS) Rating moving into the 80-plus percentile with an upgrade to 83, up from 79 the day before.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against that of all other stocks.
Decades of market research reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves.
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Is Red Rock Resorts Stock A Buy?
Red Rock Resorts stock had a failed breakout from a cup-with-handle pattern at the end of April. The gaming stock has since pulled back but trading near the previous 48.77 entry point. Now is not an ideal time to jump in since it isn't near a proper buy zone, but see if the stock manages to offer and clear an appropriate buy point.
Top and bottom line growth moved higher last quarter. Earnings were up -3%, compared to -10% in the prior report. Revenue increased from 1% to 8%.
Red Rock Resorts stock holds the No. 9 rank among its peers in the Leisure-Gaming/Equipment industry group. Boyd Gaming and Las Vegas Sands are also among the group's highest-rated stocks.
