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 Dick’s Sporting Goods (DKS), which saw a positive improvement to its Relative Strength (RS) Rating on Thursday, rising from 90 to 93.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength. IBD’s unique RS Rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price performance over the trailing 52 weeks compares to all the other stocks in our database.
Decades of market research shows that the market’s biggest winners often have an RS Rating of over 80 as they begin their largest runs.
Pennsylvania-based Dick’s Sporting Goods is now considered extended and out of buy range after clearing a 63.39 buy point in a first-stage consolidation. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Earnings grew 322% last quarter, up from 84% in the prior report. Revenue also increased, from 20% to 119%.
The company earns the No. 8 rank among its peers in the Retail-Leisure Products industry group. Big 5 Sporting (BGFV), Hayward Holdings (HAYW) and Marinemax (HZO) are among the top 5 highly rated stocks within the group.
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