Impinj is the IBD Stock Of The Day as the maker of tracking chips holds strong during the recent stock market correction. Still, PI stock dipped on Tuesday.
Meanwhile, the relative strength line for PI stock is in record-high territory as it outperforms the S&P 500.
Also, PI stock has found support at its 21-day exponential moving average and 10-week line, according to IBD MarketSmith charts.
PI stock is consolidating with a buy point of 99.10. However, a clear break above its recent pullback could offer an early entry.
On the stock market today, PI stock dropped 2.5% to close at 89.66 during an overall down day for stocks.
PI Stock Gets Buy Rating
Seattle-based Impinj makes tiny tracking chips that can connect items to the internet cloud for customers in retail, transportation, logistics and other industries. It uses a wireless technology called Rain RFID. RFID stands for radio-frequency identification. The Rain flavor of RFID also derives its name from radio-frequency identification.
On Monday, Goldman Sachs analyst Toshiya Hari reiterated his buy rating on PI stock. Impinj executives presented at the Goldman Sachs Communacopia & Technology Conference last week.
At the conference, executives noted that retailer Walmart is expanding its deployment of RFID chips from apparel to home goods and other merchandise. Hari called this a "significant development given Walmart's position as a bellwether in the industry and thus we expect to see peers follow suit."
Impinj Ranks Third In Industry Group
PI stock surged to a record high of 99 on Aug. 12 after its beat-and-raise second-quarter earnings report.
Impinj earned an adjusted 11 cents a share, unchanged from a year earlier, on sales of $59.8 million, up 27%, in the June quarter.
For the current quarter, Impinj predicts adjusted earnings of 18 cents a share on sales of $64.5 million. That's based on the midpoint of its outlook. In the third quarter last year, it lost 4 cents a share on sales of $45.2 million.
"Based on my conversations with Impinj's leading end users and go-to-market partners, I expect demand to remain strong at least through second-half 2022, driven by both new deployments and expansion at existing deployments," Chief Executive Chris Diorio said on the company's second-quarter earnings call.
Impinj stock ranks third out of 34 stocks in IBD's fabless semiconductor industry group. PI stock has an IBD Composite Rating of 82 out of 99, according to the IBD Stock Checkup tool. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
