Motorola Solutions, one of the best stocks to buy and watch right now, is approaching a new buy point in today's stock market action. MSI stock traded modestly higher midday Tuesday, just 1% away from its latest buy point. Motorola is a member of the IBD Breakout Stocks Index.
Motorola Solutions is a data communications and telecommunications equipment provider. The company develops data capture products, wireless infrastructure, bar code scanning devices, two-way radios and wireless broadband networks. Motorola also produces public safety and government products, voice and data communications products and systems, and wireless LAN securities.
In the latest reported quarter, announced May 4, Motorola earned $2.22 a share on sales of $2.171 billion. Quarterly earnings jumped 31% vs. the year-ago period, while sales grew 15%.
"Q1 was an exceptional quarter, highlighted by double-digit revenue growth across both segments and all three technologies," CEO Greg Brown said in the quarterly press release.
Brown continued: "Record first-quarter sales, orders and ending backlog positions us very well for continued growth" The results led management to raise its revenue and earnings guidance for the full year.
Wireless Leader's IBD Stock Ratings
With double-digit quarterly earnings growth in recent quarters and a solid long-term track record of profitability, MSI stock shows a strong 95 Earnings Per Share Rating, according to IBD Stock Checkup. This rating takes into account EPS growth and stability of earnings over the past three years. The two most recent quarters are weighed more heavily.
MSI stock shows a 92 out of a perfect 99 IBD Composite Rating, due to strong fundamentals in the latest quarters along with steady price action since June 2022. The IBD Composite Rating is designed to help investors easily gauge the quality of a stock's fundamental and technical metrics.
Breakout Stocks To Buy And Watch
After retaking their 50-day line in late June, Motorola shares are nearing a flat base's 299.43 buy point, per IBD MarketSmith chart analysis. Shares are just 1% away from their latest entry amid Tuesday's slight midday rise.
A key technical indicator to watch is the relative strength line. Currently, the RS line is lagging from its old highs, a sign that the S&P 500 is outperforming the wireless leader since early May. The RS line measures a stock's price performance vs. the S&P 500 and is the blue line plotted on every IBD chart. It should hit a new high on the breakout day or shortly thereafter.
Strong fundamentals and technicals make MSI one of the best breakout stocks to buy and watch in today's stock market.
With the stock market in a confirmed uptrend, investors should be on the lookout for top stocks breaking out of basing patterns. In today's stock market, IBD recommends exposure in stocks at 80% to 100% of your portfolio, according to IBD's The Big Picture.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator funds.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on the best breakout stocks to buy and watch and the stock market.
