The Relative Strength (RS) Rating for Seagate Technology entered a new percentile Thursday, with an increase from 75 to 81. It is currently on a 4-day winning streak.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength.
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
Over 100 years of market history shows that the stocks that go on to make the biggest gains tend to have an 80 or higher RS Rating in the early stages of their moves.
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Seagate Technology is building a consolidation with a 73.74 entry. It is still 5% from the buy point, but it has cleared a recent high of 69.42. It gapped up at the open today and has moved higher since. So far it is holding most of the gains going into the last hour of trading. See if it can clear the breakout price in heavy volume.
Another caveat comes from a recent article by Matt Krantz regarding this high-dividend paying stock: "Analysts are increasingly warning investors of the dangers of chasing yields. Morningstar U.S. Market Strategist Dave Sekera is cautioning investors against two high dividend paying S&P 500 stocks: International Business Machines (IBM) and Seagate Technology (STX).
IBM yields 4.6% and the price is up 3.7% this year. And Seagate pays 4.3% and it is up 25%. But Sekera says both companies aren't growing, which makes them not worth the yield."
STX Earnings
Seagate Technology showed 0% earnings growth in the latest quarterly report. Sales rose -39%.
The company earns the No. 6 rank among its peers in the Computer Software-Storage industry group. NetApp and SMART Global Holdings are also among the group's highest-rated stocks.
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