Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
INVESTOR'S BUSINESS DAILY and GLENN LARKIN

Worthington Industries Stock Falls On Earnings Despite Jump To 93 RS Rating

When looking for the best stocks to buy and watch, focus on those with rising relative price strength.

One stock that fits that bill is Worthington Industries, which saw a positive improvement to its Relative Strength (RS) Rating on Thursday, based on Wednesday's trading. It moved higher with an upgrade from 90 to 93. Unfortunately, it gapped down at the open and has stayed lower, down 13% as of this writing.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's proprietary RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against the rest of the market.

Over 100 years of market history reveals that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating in the early stages of their moves.

Follow Key Earnings Releases With Our Weekly Earnings Calendar

Now is not an ideal time to jump in since it isn't near a proper buy zone. It has also given back all gains from a previous cup with handle breakout. Now we wait to see if the stock can digest the recent earnings results (see below) and bounce back. Look for a new buy point as we enter the final quarter of the year.

WOR Earnings

Earnings growth declined in the most recent report from 73% to 28%. But revenue gains moved higher, from -19% to -15%.

The company holds the No. 3 rank among its peers in the Metal-Fabricators industry group. DMC Global, RBC Bearings are among the top 5 highly rated stocks within the group.

​Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.