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AZZ Inc. Shows Rising Relative Price Strength

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  Published in Stocks and Investing on Monday, January 19th 2026 at 20:04 GMT by investors.com
      Locale: UNITED STATES

Tuesday, January 20th, 2026 - In the ever-evolving landscape of the stock market, identifying potential winners requires more than just looking at absolute price movements. Savvy investors are increasingly focused on relative price strength (RPS), a key indicator of shifting investor sentiment and emerging leadership within specific sectors. Today, we're focusing on AZZ Inc. (AZZ), a company demonstrating notable rising RPS and exhibiting technical patterns that suggest a potential buying opportunity.

Understanding Relative Price Strength: Beyond Raw Numbers

Relative Price Strength isn't simply about how much a stock has gone up. It's about how well a stock is performing compared to a benchmark index, typically a broad market index like the S&P 500 or the Nasdaq Composite. A rising RPS signifies that the stock is consistently outperforming its peers, suggesting increasing investor confidence and a potential shift in market perception. This divergence from the overall market can be a crucial signal for investors seeking to capitalize on emerging trends. Essentially, a high and rising RPS indicates a stock is attracting more attention and capital than the broader market, hinting at potential further gains.

Why is this important? Because a stock with rising RPS often signals a leadership position within its industry. It suggests that investors are recognizing something special--whether it's innovative products, strong management, or favorable industry conditions--that sets it apart from the competition. While past performance isn't a guarantee of future success, consistent outperformance, as reflected in rising RPS, warrants closer examination.

AZZ Inc. - A Stock to Watch

AZZ Inc., a provider of galvanizing, powder coating, and automated packaging solutions, is currently demonstrating a compelling display of rising relative price strength. This means that, as of today, January 20th, 2026, the company's stock is significantly outperforming the broader market. While specific numerical values for the RPS aren't provided, the observation that it's rising is the key takeaway.

This rising RPS is particularly noteworthy alongside another technical pattern forming on the AZZ chart: a "cup with handle." This pattern is a bullish continuation pattern, commonly observed in technical analysis. A cup with handle forms as a stock trades in a rounded pattern (the "cup") followed by a period of consolidation (the "handle"). A breakout above the resistance level of the handle is generally considered a buy signal, suggesting renewed upward momentum.

Currently, AZZ is trading near its 52-week high, further reinforcing the positive momentum. This proximity to a historical high suggests that the current bullish trend is well-established and may have room to run. Investors should closely monitor AZZ's price action to determine if it breaks out of its handle formation, which would signal a potential buying opportunity.

Tools for Identifying RPS Leaders

Identifying stocks exhibiting rising relative price strength can be a time-consuming process. Fortunately, resources like IBD's Stock Finder are designed to streamline this process. This tool, a component of IBD's comprehensive stock research suite, allows users to filter and sort stocks based on RPS, alongside other key fundamental and technical metrics. Utilizing such tools can significantly reduce the effort required to find potential investment candidates demonstrating the desirable characteristic of rising RPS.

The Bigger Picture: Data-Driven Insights

IBD's DataStory series aims to provide a broader context for market trends and individual stock performance. These data stories often delve into the underlying factors driving specific movements and highlight potential implications for investors. Staying informed about these broader market trends, alongside focused analysis of individual stocks like AZZ, is critical for making informed investment decisions in the dynamic world of finance. It's important to remember that understanding the 'why' behind a stock's relative performance is just as important as the performance itself. Keep an eye on IBD.com for further data stories and insights into market dynamics.