Steel Dynamics stock saw a positive improvement to its Relative Strength (RS) Rating on Monday, rising from 80 to 83.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating identifies 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 that of all other stocks.
History reveals that the best stocks typically have an RS Rating north of 80 as they begin their biggest climbs.
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Is Steel Dynamics Stock A Buy?
Steel Dynamics stock is trying to complete a consolidation with a 136.46 entry. See if the steel producer can break out in heavy volume. It's a later-stage pattern, and investors should be aware that those are less likely to lead to significant gains. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
Earnings growth rose in the company's most recent report from -33% to -29%, but sales fell from -12% to -18%. Keep an eye out for the steel producer's next round of numbers on or around Oct. 17.
Steel Dynamics stock holds the No. 2 rank among its peers in the Steel-Producers industry group. Steel Dynamics and TERNIUM ADR are also among the group's highest-rated stocks.
