Credit: Shutterstock photoWhen considering what names to put on your watch list, focus on stocks with an 80 or higher RS Rating . Lions Gate Entertainment (LGFA) now meets that criteria, with an increase from 72 to 82 Friday.
[ibd-display-video id=2385970 width=50 float=left autostart=true] This proprietary rating tracks technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the last 52 weeks matches up against other publicly traded companies.
Decades of market research reveals that the best-performing stocks often have an 80 or higher RS Rating in the early stages of their moves.
See How IBD Helps You Make More Money In Stocks
Lions Gate Entertainment broke out earlier, but is now trading around 3% below the prior 33.78 entry from a cup without handle . If a stock you're tracking clears a buy point then falls 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new chart pattern and buy point. Also keep in mind that the latest consolidation is a later-stage base, and those involve more risk.
Earnings growth rose last quarter from 308% to 2,800%. But revenue gains fell from 82% to 47%.
The company holds the No. 2 rank among its peers in the Leisure-Movies & Related industry group. Netflix ( NFLX ) is the No. 1-ranked stock within the group.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
