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When building your watch list, look for stocks with an 80 or higher RS Rating. Universal Health Cl B (UHS) just cleared that benchmark with an upgrade from 78 to 81. IBD's proprietary rating tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database. History shows that the best-performing stocks often have an 80 or higher RS Rating as they begin their biggest climbs. Universal Health Cl B broke out earlier, but has fallen back below the prior 212.87 entry from a cup with handle. 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 latest pattern is a later-stage base, and those involve more risk. Earnings growth declined in the most recent report from 31% to 24%. But revenue gains moved higher, from 7% to 10%. Look for the next report on or around Oct. 27. The company holds the No. 2 rank among its peers in the Medical-Hospitals industry group. Tenet Healthcare (THC) is the No. 1-ranked stock within the group. This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
