In recent years top-ranked T-Mobile has moved up from what some saw as a third-rate network to a market leader. On Tuesday, T-Mobile U.S.' stock Relative Strength Rating surged above a key benchmark, rising to 82. Bellevue, Wash.-based T-Mobile's stock was up about 3% to 131.46 as it rose above its 50-day line.
T-Mobile Stock Joins Select Group
The new 82 RS Rating means that T-Mobile stock has outperformed 82% of stocks on price performance this past year. Decades of market research reveals that the best stocks tend to have an 80 or higher RS Rating as they launch their biggest price moves.
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T-Mobile U.S' earnings popped 53% in the latest quarterly report, to $1.41 per share. Revenue edged up 2% to $20.1 billion.
Among its other key ratings, the provider of unlimited broadband voice and data services has a 91 EPS Rating of a best-possible 99. The 91 rating indicates it's outperformed more than 90% of all companies on recent quarters and years profit growth. Additionally, T-Mobile stock has an 87 Composite Rating.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
T-Mobile stock holds the No. 1 rank among its peers in the Telecom Services-Wireless industry group. Iridium Communications and U.S. Cellular are also in the top five in the group.
Breaks Out, Dips Below Breakout Point
T-Mobile stock broke out earlier, but is now about 4% below the prior 135.25 entry from a cup with handle. However, its stock has risen four of the last five trading sessions, making it one to watch. It should be noted that if a stock you're watching clears a buy point then declines 7% or more below the original entry price, it's considered a failed base. Also, the latest consolidation is a later-stage base. Such bases can succeed but are less likely to than early stage bases.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary Relative Strength Rating tracks price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
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