The IBD SmartSelect Composite Rating for Frequency Electronics rose from 93 to 96 Tuesday.
The revised score means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Frequency Electronics is now out of buy range after breaking out from a 14.32 buy point in a cup with handle. Be aware that it is a thinly traded stock, with average daily dollar volume under $8 million.
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One weak spot is the company's 71 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
In Q2, the company reported 250% earnings growth. Top line growth came in at 16%, down from 22% in the previous quarter.
Frequency Electronics earns the No. 1 rank among its peers in the Telecom-Cable/Satellite Equipment industry group. Harmonic and Telesat Cl A are also among the group's highest-rated stocks.
