When considering what names to put on your watchlist, consider stocks with an 80 or higher Relative Strength Rating. Weyerhaeuser (WY) is one stock that just reached the mark, now earning a score of 82. The timberlands owner is in a sweet spot amid the housing boom. Homebuilder stocks are on fire, fueled by low interest rates and lack of inventory, combined with pent-up demand. And that requires lumber.
The 82 RS Rating means that real estate investment trust Weyerhaeuser’s performance over the past year tops that of 82% of all stocks. IBD research shows that the market’s biggest winners tend to have an RS Rating north of 80 as they begin their biggest climbs.
Additionally, Weyerhaeuser boasts a strong 93 Composite Rating.
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.
The Seattle-based REIT’s B Accumulation/Distribution Rating, one of the five Composite ratings, shows moderately strong buying of its stock by institutions.
Regarding fundamentals, it reported 406% year-over-year earnings growth last quarter, to 91 cents per share. That came on the heels of a 1,500% EPS surge the prior quarter. Revenue grew 45% in its most recent quarter, to $2.51 billion.
Weyerhaeuser has moved more than 5% past a 36.32 entry in a first-stage flat base, meaning it’s now out of a proper buy zone. Look for the stock to offer a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week moving average.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary rating identifies market leadership by showing how a stock’s price action over the last 52 weeks compares to that of other stocks on the major indexes.
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