The Relative Strength (RS) Rating for Abbott Laboratories (ABT) moved up into a new percentile Tuesday, as it got a lift from 67 to 72. Abbott Labs stock was down fractionally early Tuesday in sync with market consolidation
The new 72 Relative Strength Rating means that Abbott Laboratories stock has outperformed 72% of all stocks over the past year.
Near-Perfect Composite For Abbott Stock
Stocks that go on to make the biggest gains tend to have an RS Rating of over 80 as they launch their largest price moves. See if Abbott Laboratories can continue to rebound and clear that threshold.
On Sept. 2, Abbott Laboratories announced that it has bought Walk Vascular, a maker of devices designed to remove blood clots. Financial terms weren’t disclosed.
Among other key ratings, Abbott Labs stock has an excellent 95 EPS Rating out of a best possible 99. The strong 95 rating reflects strong profit growth both in recent quarters, when it’s put up triple-digit gains the past two quarters, and long term.
Additionally, Chicago-based Abbott Labs stock carries a near-perfect 98 Composite Rating, putting it in the top 2% of all stocks.
IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Finally, its B+ Accumulation/Distribution Rating shows that institutional investors are relatively heavily buying shares.
In terms of fundamentals, the company has posted rising EPS growth in each of the last four reports. Sales gains have also moved higher over the same time frame.
Abbott Laboratories broke out earlier, but has fallen a bit below the prior 128.64 entry from a consolidation.
What To Watch For
See is Abbot Labs stock can form a fresh base and break out in strong volume. If it continues to fall, and retreats 7% or more below the original entry price, it’s considered a failed base. In that case, wait for the stock to set up and break out from a new chart pattern and entry price. Also understand that the most recent pattern for Abbot Labs stock is a later-stage base. Such bases can succeed, but are less likely to do so than earlier stage bases.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD’s unique RS Rating tracks technical performance by showing how a stock’s price action over the last 52 weeks measures up against that of the other stocks in our database.
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