Credit: Shutterstock photoIn a welcome move, Textron ( TXT ) saw its Relative Strength Rating improve from 68 to 72 on Monday.
[ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's unique rating measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
History shows that the best stocks often have an 80 or higher RS Rating in the early stages of their moves. See if Textron can continue to show renewed price strength and hit that benchmark.
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Textron broke out earlier, but has fallen back below the prior 55.90 entry from a flat base . 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. It's best to wait for the stock to form a new pattern and breakout. Also understand that the most recent pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Regarding top and bottom line numbers, Textron has posted two quarters of accelerating earnings growth. Revenue gains have also moved higher over the same time frame.
The company holds the No. 29 rank among its peers in the Aerospace/Defense industry group. Teledyne Technologies ( TDY ), Heico (HEIA) and Mercury Systems ( MRCY ) are among the top 5 highly rated stocks 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.
