One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Lyft stock now clears that threshold, with a jump from 73 to 84 Wednesday.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks compares to all the other stocks in our database.
Over 100 years of market history shows that the best stocks typically have an RS Rating north of 80 as they launch their biggest climbs.
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Is Lift Stock A Buy?
Lift stock has been trading above its 200-day moving average in the past five months. Now is not an ideal time to jump in since it isn't near a proper buy zone, but see if the ride share stock manages to form a consolidation and break out.
Earnings growth rose last quarter from 0% to 23%. But sales fell from 14% to 3%.
Lyft stock earns the No. 20 rank among its peers in the Leisure-Services industry group. Royal Caribbean Group and Uber Technologies are also among the group's highest-rated stocks.
