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Retailer Sally Beauty Stock Looking Good With Rising Relative Strength

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 Sally Beauty (SBH), which saw a welcome improvement to its Relative Strength (RS) Rating on Friday, with an increase from 87 to 94.

The beauty supply retailer gapped up Thursday after posting strong first-quarter earnings results. Sally Beauty earnings grew 148% last quarter, up from 6% in the prior report. Revenue also increased, from -5% to 6%.




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When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD’s proprietary RS Rating tracks 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 all other stocks in our database.

Decades of market research reveals that the best-performing stocks typically have an RS Rating of over 80 at the beginning of a new run.


Looking For The Best Stocks To Buy And Watch? Start Here


Is Sally Beauty Stock A Buy?

Sally Beauty stock is now considered extended and out of buy range after clearing a 22.01 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 line. Read “Looking For The Next Big Stock Market Winners? Start With These 3 Steps” for more tips.

 

The Texas-based firm holds the No. 4 rank among its peers in the Retail-Specialty industry group. Growgeneration Corp (GRWG) and National Vision Holdings (EYE) are among the top 5 highly rated stocks within the group. For more industry news, check out “Retail And E-Commerce Stocks And Industry News.”

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