When considering what names to put on your watch list, look for stocks with an 80 or higher RS Rating. KinderCare Learning Cos. now meets that criteria, with an increase from 69 to 80 Thursday.
IBD's proprietary RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the last 52 weeks matches up against that of all other stocks.
History reveals that the best-performing stocks typically have an 80 or better RS Rating as they launch their biggest runs.
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KinderCare Learning Cos. broke out earlier, but has fallen back below the prior 29.40 entry from a ipo base. If a stock you're tracking clears a buy point then declines 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new base and entry price. Also keep in mind that the latest pattern is a later-stage base, and such bases are more prone to failure.
The company showed 25% EPS growth last quarter. Sales gains came in at 5%.
KinderCare Learning Cos. earns the No. 6 rank among its peers in the Consumer Services-Education industry group. Stride, Adtalem Global Education and Lincoln Educational Svcs are among the top 5 highly rated stocks within the group.
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