On Friday, Cboe Global Markets hit an important technical milestone, with its Relative Strength (RS) Rating moving into the 80-plus percentile with an improvement to 83, up from 77 the day before.
IBD's proprietary RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the trailing 52 weeks matches up against that of all other stocks.
History shows that the market's biggest winners tend to have an 80 or higher RS Rating in the early stages of their moves.
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Cboe Global Markets broke out earlier, but is now approximately 5% below the prior 216.14 entry from a flat base. If a stock you're watching breaks past a buy point then falls 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new pattern and breakout. Also keep in mind that the latest pattern is a later-stage base, and those involve more risk.
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 21%, compared to 13% in the prior report. Revenue increased from 7% to 16%.
The company earns the No. 10 rank among its peers in the Financial Services-Specialty industry group. Sezzle, Tradeweb Markets and Marex Group are among the top 5 highly rated stocks within the group.
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