On Tuesday, Microchip Technology stock reached an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 81, up from 76 the day before.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique rating tracks share price action with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
Decades of market research shows that the top-performing stocks tend to have an RS Rating north of 80 as they begin their biggest price moves.
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Is Microchip Technology Stock A Buy?
Microchip Technology stock is trying to complete a with an 87.86 entry. See if it can clear the breakout price in heavy volume. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
The Arizona-based chipmaker showed 21% earnings growth last quarter, while sales growth came in at 21%.
Microchip Technology stock holds the No. 3 rank among its peers in the Electronics-Semiconductor Manufacturing industry group. STMicroelectronics and Microchip Technology are also among the group's highest-rated stocks. For more industry news, check out "Chip Stocks To Watch And Semiconductor Industry News."
