Cars for sale have been in short supply, giving auto sellers like Penske Automotive Group (PAG) pricing power. On Tuesday, Penske stock hit an important technical milestone, with its Relative Strength (RS) Rating entering into the 90-plus percentile due to an upgrade to 91, up from 88 the day before.
The new 91 RS Rating means that Penske stock has outperformed 91% of all stocks over the past year. Market research shows that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 at the beginning of a new price run.
Penske Stock Roared 400% Higher From Early 2020
A semiconductor shortage has hit new car makers hard, in most cases forcing them to cut back on production. With new car prices rising and in short supply, consumers turned to the used car market. That, in turn, has led