Credit: Shutterstock photoOn Wednesday, Waddell & Reed Financial ( WDR ) earned an upgrade to its Relative Strength ( RS ) Rating , from 69 to 72.
[ibd-display-video id=2881825 width=50 float=left autostart=true] IBD's proprietary rating measures price movement with a 1 (worst) to 99 (best) score. The rating 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 reveals that the stocks that go on to make the biggest gains typically have an RS Rating of above 80 as they begin their biggest runs. See if Waddell & Reed Financial can continue to show renewed price strength and hit that benchmark.
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Waddell & Reed Financial broke out earlier, but has fallen back below the prior 21.30 entry from a cup with handle . If a stock you're watching breaks past a buy point then falls 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 base and breakout. Also understand that the latest pattern is a later-stage base, and such bases are more prone to failure.
Although earnings and sales growth came in at -30% and -5%, respectively, in the latest report, that marked one quarter of acceleration for earnings and three for sales.
Waddell & Reed Financial earns the No. 60 rank among its peers in the Finance-Investment Management industry group. ( CIFS ), Noah ( NOAH ) and Eaton Vance ( EV ) 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.
