One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Palo Alto Networks just hit that mark, with a jump from 79 to 85 Wednesday.
When looking for 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 price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
History shows that the best stocks typically have an RS Rating north of 80 in the early stages of their moves.
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Palo Alto Networks, discussed earlier today on IBD Live, is building a consolidation with a 641.00 entry. Add to your watchlist and see if it can clear the breakout price in heavy trade. A MarketSmith chart also shows RS Line near a new high, a positive sign.
Earnings growth increased last quarter from 12% to 30%, but sales fell from 30% to 29%.
Palo Alto Networks earns the No. 2 rank among its peers in the Computer Software-Security industry group. Fortinet also among the group's highest-rated stocks.
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