Horizon Therapeutics (HZNP) had its Relative Strength (RS) Rating upgraded from 70 to 75 Tuesday — a welcome improvement, but still shy of the 80 or better score you look for. The biotech stock climbed back above its 50-day moving average and is closing in on its buy point of 96.54.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD’s proprietary RS Rating measures market leadership by showing how a stock’s price action over the last 52 weeks measures up against that of the other stocks in our database.
Over 100 years of market history reveals that the market’s biggest winners often have an RS Rating north of 80 in the early stages of their moves. See if Horizon Therapeutics can continue to show renewed price strength and clear that threshold.
Horizon Therapeutics stock broke out earlier in early February, but is now trading about 3% below the prior 96.64 entry from a consolidation. 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 base and entry price. Also keep in mind that the most recent pattern is a later-stage base, and such bases are more prone to failure. Read “Looking For The Next Big Stock Market Winners? Start With These 3 Steps” for more tips.
Horizon Therapeutics posted negative growth for both the top and bottom lines last quarter.
The company holds the No. 11 rank among its peers in the Medical-Biomed/Biotech industry group. Alexion Pharmaceuticals (ALXN) and Maravai Lifesciences (MRVI) are also among the group’s highest-rated stocks. For more industry news, check out “Biotech And Pharmaceutical Industry And Stock News.”
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