Lumber Liquidators Holdings Inc. (NYSE:LL) jumped from a Relative Strength Rating of 69 to 80 – so what does this mean for the company?
The Relative Strength Rating (RS Rating) is an important number to look at when checking to see how the company is doing. Having an RS Rating of 80 or above is a strong indication that the company is doing something right.
How does it do this? Well, the RS Rating measures market leadership by showing how a stock’s price action over the last 52 weeks measures up against that of other stocks on the major indexes.
Those companies in the market with an RS Rating of 80 or above, when launching their biggest runs, have, throughout history, done the best in the market sphere. This is why it’s so interesting to see Lumber Liquidators’ RS Rating make that jump. It will be even more interesting to see how long it can keep its RS Rating at 80 or above.
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