One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Watsco cleared that benchmark Thursday, with a jump from 79 to 82 Thursday.
IBD's unique rating tracks share price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history reveals that the best-performing stocks tend to have an RS Rating of at least 80 as they launch their biggest price moves.
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Watsco is still within a buying range after breaking past a 520.41 buy point in a consolidation. Once a stock moves 5% or higher beyond the original entry, it's considered out of a proper buying area.
The company reported -3% earnings growth in the latest quarterly report, while sales growth came in at 2%.
The company holds the No. 9 rank among its peers in the Building-A/C & Heating Products industry group. Comfort Systems USA, CSW Industrials and Trane Technologies are among the top 5 highly rated stocks within the group.
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