RELATIVE STRENGTH

A stock's price movement over the past year as compared to a market index (like the S&P 500). Value below 1.0 means the stock shows relative weakness in price movement (underperformed the market); a value above 1.0 means the stock shows relative strength over the 1-year period. Equation for Relative Strength: [current stock price/year-ago stock price] divided by [current S&P 500/year-ago S&P 500]. Note this is a potentially misleading indicator of performance because it does not take risk into account.