When considering what names to put on your watch list, look for stocks with an 80 or higher RS Rating. Steel Dynamics just cleared that benchmark with an upgrade from 65 to 83.
This exclusive rating from Investor's Business Daily tracks share price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks stacks up against all the other stocks in our database.
Decades of market research shows 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.
Hone Your Stock-Picking Skills By Focusing On These Factors
Steel Dynamics is now considered extended and out of buy range after clearing a 138.72 buy point in a third-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Although earnings and sales growth came in at -41% and -5%, respectively, in the latest report, that showed improvement for both EPS and revenue.
Steel Dynamics earns the No. 2 rank among its peers in the Steel-Producers industry group. Tenaris ADR is the top-ranked stock within the group.
RELATED:
IBD Stock Rating Upgrades: Rising Relative Strength
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
