Investor's Business Daily's 1-99 score ranking a stock's price performance over 12 months relative to all other stocks — O'Neil's proprietary relative strength measure.
Deeper Explanation
The RS Rating is calculated from the stock's 12-month price change weighted toward the most recent 3 months. A rating of 95 means the stock has outperformed 95% of all stocks in the market over the past year. O'Neil's historical research found that the stocks making the biggest subsequent moves almost always had RS Ratings above 80 at the time of their breakout. A stock breaking out from a proper base with an RS Rating below 70 is a warning — the market leadership is not confirming the breakout. The RS Rating is a composite of what the market knows: institutional research, insider knowledge, and supply/demand mechanics, distilled into a single number.
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